Apple Inc (AAPL)

[Altaire4_2dot0]

Fi, In an odd way the shortages are helping to fuel the mini iPod demand

- its somewhat similar to the collectibles market. If everyone had one the demand wouldn't be as strong and it would not be considered a prized possession. How else does APPLE get away with charging a premium price for many of its products.

This can backfire sometime ... but I dare you to ask any of your customers if they would like to be removed from a waiting list to get one. People who want a Mini iPod are people into what I call the COOL factor. Is it a Fad ? Like Bell Bottoms and Tie Die Tee shirts .... Sort of.

Do you remember what it was like when you where the first one to get a new gadget or a music album that everyone seemed to want. Every once in awhile APPLE creates a must have product because it Taps into a psychological mystique ... that you need this product to be hip, contemporary or down right fashionable. Music helps you feel a whole host of emotions so people place a great amount of value in having their music at their fingertips. The iPod, iTunes thang taps into almost an emotional need not unlike the fashion and cosmetics industries which attempts to tap into ones conceived self-image offering us temporary cures for our perceived physical flaws.

Apple's marketing by the way has been dead on ....effective.

Go AAPL !!!