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Why the iPod mini costs $249

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Apple’s worldwide product marketing manager for the iPod, Danika Cleary, talks to Macworld about the pricing for the new iPod mini:

iPod mini costs $249 in the US that’s just $50 less than the low-end iPod which offers a gargantuan 15GB capacity. Press reports before the announcement of iPod mini had speculated Apple would offer a sub-$100 device to compete in the flash-based music player market. The $249 price-tag Apple then announced generated a wave of criticism from users who believe that’s too expensive. Does Apple think the price is right? Cleary clearly does. She said: “We really do think the price is right, and that’s because of a couple of reasons. The first is: when you really look at the flash-based players on the market, for around $200 you can get one but for just $50 more you can get 16 times the amount of music in a package that’s not much bigger than any of the top-selling players in that category.”

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