Apple Updates iPod Mini, Photo Lines

[USMCRET6391]

February 23, 2005, 9:13 AM

As expected, Apple announced an overhaul to nearly its entire iPod line Wednesday in order to strengthen its position in the industry.

The most notable changes were to Apple's iPod mini, which was bumped to 6GB and given three new vibrant colors. Battery life was also increased to 18 hours. Despite reports, however, Apple did not endow the Mini with a color screen.

Pricing on the 6GB Mini was kept at $249 USD, while the 4GB version was dropped to $199 USD. Apple's update to the Mini was long expected following the launch of Creative's Zen Micro, which features ten colors, monochrome screen and a 5GB capacity for $249 USD.

"The iPod mini is now available at the magic price point of $199," said Apple CEO Steve Jobs. "At this breakthrough price point, and with more than twice the battery life, the new iPod mini should appeal to even more music lovers."

The iPod photo saw some changes as well. Apple discontinued the 40GB version, along with the non-photo 40GB iPod. Two new models, at 30 and 60GB were introduced with a new iPod Camera Connector available separately for $29 USD. Prices of the new iPod photos were also lowered to $349 and $449 USD, respectively.

Apple's most popular hard-drive player, the 20GB standard iPod remained unchanged at $299. All of the new iPods are immediately available for purchase worldwide.

Jupiter Research senior analyst Joe Wilcox says he was not surprised that Apple did not bring out color screens for the iPod mini. "iPod mini is very popular and selling well without adding color. Today's announcement differentiates iPod mini by size and price, which should be enough for now."

"Besides, color would be inconsistent with Apple practices. The company tends to roll out incremental changes in products usually ending up with a big change," Wilcox said. "It's too soon for iPod mini."

According to a survey by Banc of America Securities, Apple remains the top seller of MP3 players and its share of the market is increasing. iPod usage was at 40.2 percent for the December quarter, up from 37.5 percent in the previous quarter.