Apple showed today that it wants to be competitive on value, slashing the price on its existing line of iPods while offering new, higher-capacity models.
Even before Steve Jobs took the stage at Apple's music-themed event today, iPod prices quietly lowered at the Apple store. The biggest change was the 32 GB iPod touch, which fell from $399 to $279. Later, Jobs revealed a new 64 GB iPod Touch at the higher price point.
Compared to the $249, 16 GB iPod Touch, the upcoming Zune HD will be less expensive, at $220 for the same size. However, the 32 GB Touch will be cheaper than a comparably-sized $290 Zune HD. And while Microsoft plans to phase out the original Zune, Apple is still backing the iPod classic, cutting the price by $20 for 120 GB and introducing a 160 GB model at the old price of $249.
The remaining iPods saw price drops in the range of $20 to $50.
Apple's big announcement, however, was the introduction of a video camera in the iPod Nano. Jobs specifically called out the Flip video recorder, a handheld device that records 4 GB of video for $149, saying that Apple wanted to get in on that market. The video-enabled iPod Nano, with a larger 2.2-inch screen, costs $149 for 8 GB and $179 for 16 GB, and also includes FM radio and the VoiceOver feature found in the latest iPod Shuffles.
"This is the new Apple, isn't it?" Jobs said, according to Engadget, explaining that the Nano now offers the same features as the Flip for "free."
That's a telling quote, because it shows that Apple's trying to come down on price, or at least argue that it's a better value than the competition. The company as a whole hasn't struggled in this economy, mostly on the strength of the iPhone, but iPod sales did take a dip last quarter. The iPod line was due for a new reason to buy, and even with the new features introduced today, we're still in a time where money talks.
