Yesterday, Apple announced a new series of its popular iPod MP3 player that will include touchscreen technology on even the smallest versions, as well as front-facing cameras on some models for video conferencing. The products come in three prices: $229, $299 and $399.
According to Ben Kunz at BusinessWeek, compared to the $399 "decoy" model, the $229 iPod seems like a great deal - even considering that the iPhone 4, which does everything the iPod can, plus more, costs just $199 with an AT&T contract.
Apple also attracts customers by releasing products for high prices, then dropping those prices rapidly, creating a reference point that makes the cheaper price seem like a steal. "You may be on the fence for a $499 iPad," Kunz writes, "but if it drops to $399 by Christmas, won't you feel better?"
In addition to its new line of iPods, Apple also released a new version of its media player, Apple TV, as well as an updated version of its popular iTunes media download center, iTunes 10.
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