JupiterResearch: Shuffling the iPod line

Michael Gartenberg posts at the Jupiter Analyst Weblogs about Apple announcing a new 1GB iPod nano for $149 and dropping the prices of its Shuffle line to $69 for the 512MB model and $99 for the 1GB model. Gartenberg writes:

Good move for them as we know each price band opens up new markets for them. Even more clever is the way the pricing model is structured so if you're looking at a 512mb shuffle, it's tempting to be upsold to the 1gb model and if you're in the market for a 1gb Shufle, just a little more gets you a Nano. Very clever. Lots of inerest in video downloads as well, looks like Apple boosted their number by 50% in the last month.

Smart move indeed for Apple. Now at $69, the 512MB Shuffle is firmly entrenched at a mass market price point and priced to move a lot of units. Plus the upsell potential as Gartenberg notes will make it even harder for the competition to gain ground...