(sub. req.): Apple plans to introduce a cheaper iPod that costs much less than its current $299 entry-level model…
Pricing low is risky for Apple, which has made the iPod the linchpin of a broader foray into the music business. Apple also sells downloadable songs for 99 cents each through its iTunes Music Store, but the company has said it makes little profit off the site. Apple CEO Steve Jobs has said he views the music site as a way to sell more iPods. A $200 iPod would likely offer profit margins in the “single-digits or low double-digits” compared with profit margins ranging from 20% to 45% for its higher-end models, says [Charlie Wolf, an analyst at brokerage firm Needham & Co].
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