« Motorola Under Pressure | Main | Positive Sentiment Change For Media Stocks? »

February 07, 2006

Apple Anounces New iPod nano

AAPL shares are set to bounce at the open following some supportive analyst commentary and the introduction of a 1G iPod nano. The new nano will be priced at $149 while the shuffle line will continue with prices dropping to $69 for the 512K model and $99 for the 1G model. AAPL now has iPods prices at $69, $99, $149, $249, $299, and $399. The big jump in value comes with the 30G and 60G video iPods priced at $299 and $399 and holding 7,500 and 15,000 songs, respectively. The highest priced and capacity nano is $29 for 4G, storing 1,000 songs. This product lineup has something for everyone and seems to support upgrade and downgrade demand which helps margins.

It will be interesting to see if the early share gains hold. Lately, that has not been the case and every light has been met by heavy selling. One concern has been a sharper than expected seasonal downturn in iPod sales in the March quarter. I think the 1G nano will sell-through well and AAPL will ship a lot units. Availability is immediate.

My addition of AAPL shares in the mid to upper $70s has been wrong so far. I think it will prove correct later this year when confidence in the long-term growth story overwhelms near-term concerns about iPod seasonality and the Mac transition.

Posted by Steve Birenberg at February 7, 2006 10:11 AM in AAPL