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Originally Posted by lilac_jive
I'd agree, but the iPod has no expandable storage or a user replacable battery and does extremely well. But then again, it is Apple and they are "trendy."
I will be interested in seeing which sells better though, the 300 or the 600. I think the 300 will kick some butt with that price point.
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lilac, you are right. The 300 is designed to sell far better than the 600. It is the price leader and will get a lot of people into e-books that would not take the plunge at the higher price point. How many of them need or want the additional features of the 600? I feel the answer is, "not that many."
This model introduction and pricing follows the classic business model called "market skimming." In market skimming, the concept is introduced to the early adopters at a high price reflective of the limited sales and high distribution costs. In time the features offered expand on the top models and the price drops on all models. The price leader (the lower priced model(s) becomes the wedge to create and expand the market. Also, as the number of units sold increase, the economies of scale kick in. We have seen this before. Consider the calculator, the Polaroid camera, the digital camera, the camcorder, wide screen TV, cell phones, and PCs. All of them followed the same path.