Apple Inc (AAPL)

[langostino]

"signs of capitulation"

"Signs of capitulation here - Apple suddenly needs to move much faster than they thought they would. Perhaps iPod numbers are coming down faster than we thought."

A different take: perhaps this isn't "capitulation" and a change in gameplan, but is exactly what Apple's master plan called for all along. The most crucial move in building the iPod franchise came when Apple elected to drive price down dramatically, sacrificed AUP and squeezed its own margins in order to grab dominant market share, while expanding the market. If I recall correctly, the iPod, like the iPhone, started out at $599 for the high-end model. It was when Apple hit that $199 price-point that things really exploded.

Beyond that, I think Apple's bigger concern isn't slowing iPod sales, but the limited amount of time they've got to grab share in the phone market before Android/g-Phones hit the street. I think they've known all along that they wanted to do everything possible to move at this speed on that account.

I dread having to deal with my local ATT store, but I'm looking forward to the 2nd week of July. My only regret: I suspect Apple's master plan will call for delivering a doubling of storage in advance of the holiday shopping season, and that a better camera won't be far behind. I only pray that these Rev B phones are capable of handling video iChat, which is the one major feature I think Apple is sure to deliver in the next 6-9 months.