Ipod

PART 3-MARKETING MISCUE MANUFACTURING DEFECT RESULTS IN QUITE A STIR FOR IPOD NANO

Innovation has been key in Apple Computer’s transition from just a computer company into a consumer electronics company as well. One of Apple’s most prominent consumer electronics product introductions has been the iPod. Though companies such as Dell countered with competing products (e.g., the Dell DJ), the iPod quickly became synonymous with MP3 players. Without a doubt, the iPod has been a runaway success for Apple. With estimated quarterly shipments of almost 7 million iPods, Apple continues to crush competitors. The company recognized that, as with any cool product offering, it had to keep the spotlight on the iPod. To do so, Apple introduced the iPod Nano in the fall of 2005. Considered by some to be the coolest iPod yet, the iPod Nano was a hybrid of the iPod Shuffle, the iPod Mini, and full-sized color iPods. Combining key features from all three products, plus some new features, the iPod Nano brought new meaning to the phrase “thin is in.” With dimensions of 3.5 by 1.6 inches and a back-to-front depth of 0.27 inches, the iPod Nano could fit into a business card wallet. Two models of this pencil-thin player, available in black or white, were introduced. Starting at $199, the 2GB model could hold 500 songs. The 4GB model could hold 1,000 songs and had an expected retail price starting at $249. Accessories for the Nano included lanyard headphones, an armband, tubes in five colors that looked cool and also served as safety protection, in-ear earphones, a dock, a USB power adapter, and a USB cable. Apple expected the accessories to contribute significantly to its profits from the Nano. The new iPod was introduced with much fanfare, including Steve Jobs literally pulling the iPod Nano out of his pocket. This demonstration of where to carry the iPod Nano may linger in the minds of many purchasers, particularly those who retrieved their new iPod Nanos from their pockets only to...