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Apple Sticks Wi-Fi in New iPod, Drops iPhone Price

I've been in the audience when Steve Jobs makes an appearance at the Moscone Center in San Francisco. The few moments before he walks on stage are like waiting for a rock star to appear. Or maybe a really casually dressed Santa Claus — because Jobs always brings presents.

At today's "Apple Event," he brought a bundle, so to speak, including: a new version of iTunes that will allow users to make custom ring tones for their iPhones; a redesigned iPod Nano that includes video, more games support and more storage; a new partnership with Starbucks that will make it possible for users to buy whatever music is playing at their local Starbucks when they walk in; and the touch-screen iPod Touch, the first iPod to feature wireless networking capabilities.

And Jobs must have been reading all those reports saying that the iPhone isn't selling quite as well as hoped, because Apple is dropping the price of an 8-gigabyte iPhone by $200 to $399. (I think it's still about $100 too high for many consumers, but it's more affordable.)

Macworld offers lots of coverage of all the new features.

Jobs even joked about the company's recent problems with NBC Universal, which said last week that it won't renew its contract to sell its popular TV shows on iTunes. When showing people how to turn their tunes into custom phone rings, Jobs played "Give Peace a Chance," and added, "That's [for] when NBC calls."

 

Comments (Send a comment)

I just did a post on the new iPods over at Highbrid Nation and I'm pretty excited. I've had my current ipod for over two years and its about time for an update.I wonder what other apps we will see for that TOUCH.

Sent by Evorgleb | 6:55 PM ET | 09-05-2007

PaLEEEZE! The date of the article you cite on the iPhone not selling well is July 25! In August, the iPhone outsold all other smartphones on the market, achieving 1.8% of the entire cell phone market. Pretty impressive performance for a newcomer. Inaccurate reporting like this affects a company's stock price. Please get the facts straight.

Sent by Wanting Real Data | 10:05 PM ET | 09-05-2007

A correction to my earlier comment ... The figures I cite (1.8% of market and greater marketshare than other smartphones) was for July - not August. Correction made, my point stands: There are interpretations for the price cut that are every bit as plausible as the notion that iPhone sales have slipped. Apple said this price cut was planned - a claim supported by the pricing of the iPod Touch vs. the iPhone. Apple would have had a hard time selling the iPhone against the iPod Touch if they DIDN'T lower the price. As a stock holder, I'm pleased with the move and think the sales figures this holiday season will easily bear out the wisdom of Apple's decision.

Sent by Wanting Real Data | 8:51 AM ET | 09-06-2007

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