Apple has just lowered prices on both of its iPod Shuffle models and introduced a new 1GB iPod Nano priced at $149. The company now has a wide range of iPods priced from $69 to $399 – seemingly something for everyone.
As Cringley noted last year, Apple seems to be pursuing the King Gillette Strategy (give away the razor to sell more blades)- although at the time Cringley assumed that Apple had turned the Gillette model on its head by eliminating the loss leader altogether.
With every price cut Apple makes it starts to look more and more like the iPod is becoming the razor and that media sales are turning into the the blades. I’m beginning to wonder how long it will be before Apple releases a free 256mb iPod Shuffle tethered to iTunes.
Given a choice I think I’d take a free iPod over an invisible iPod. Although, for the time being, the free iPod is invisible.