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Published on MacScoop (http://www.macscoop.com)

RED nano seeing incredible demand, Apple considering other RED products

By Alexandros Roussos
Created 2006-10-30 13:04

Apple's "RED" nano, which was introduced a little more than two weeks ago, is seeing incredible demand while overall iPod sales remain strong, Apple Store sources recently told MacScoop.

Hundreds of thousand orders

The "RED" nano is Apple's first product that fights against AIDS, as for each purchase, $10 go to an AIDS-fighting foundation (see Join RED [1]). It sports the same technical specifications and form factor as the mid-range 4GB iPod nano, but it comes in red, a color that was not available in iPod's line-up yet. The price is also unchanged at $199.

Though sources could not reveal the exact number of sales, they believe the company has received hundreds of thousand orders for this new flavor in the first two weeks, with online and physical retail stores seeing similar demand.

A look at Apple's online store [2] sales top 10, clearly shows that the "RED" nano is a big seller, on the top of the list, along with other iPod models.

MacBook coming next in as Apple RED product?

Given the huge number of orders and sales Apple has registered in the first days after the RED nano was introduced, the company is considering other RED products, with the MacBook -said to be next to the list-, the iMac and the video iPod as candidates, sources say.

However, sources added that it might be too early to predict with certainty the arrival of these products. A new color in any of Apple's product line-up means more complicated production and inventory management, resulting in additional costs for the company.

Moreover, if Apple keeps the same price for the product as it did with the iPod nano, this results to a lower margin on each sale. Sources told MacScoop that it's the main reason why Apple sells this product exclusively through its Apple online and retail stores. This means -just guessing- that if any other RED product is to come, it may also be an Apple Store exclusivity.

Overall iPod demand very strong

Sources also told MacScoop that the other iPod models are doing very well and that the company will probably post record iPod sales for the December quarter, surpassing by far last year's sales of more than 14 million iPods.

Apple has recently released its Q4 financial results, revealing iPod sales of more than 8.7 million, exceeding some analysts' estimates by far. The company's executives said during the financial conference call that the refresh of the iPod line-up helped to accelerate sales in the fourth quarter's end.

The iPod sales are also driven by recent price cuts and the availability of exclusive accessories such as the Nike+iPod kit. Apple recently announced that during Q3 2006, it has sold over 400 000 Nike+iPod kits, with limited availability outside the united states at that time.

Additionally, the company should start shipping its new iPod shuffle very soon and though we have no data on it and considering its very low price, we can expect it to be a big seller too. The new shuffle comes in a new, smaller form factor and in a unique 1GB model priced just $79. The iPod nano starts at $149 for the 1GB 2GB version while the bottom-line video-enabled 30GB iPod is now priced just $249, forcing competitors like Microsoft to review their pricing strategy.

All these factors, including the RED nano's success could let Apple enjoy unpreceded iPod sales for this quarter with sources providing their "humble projections" of more than 16 million iPods sold for the December quarter.



Source URL:
http://www.macscoop.com/articles/2006/10/30/red-nano-seeing-incredible-demand-apple-considering-other-red-products