Apple Adds 1GB nano, Cuts Shuffle Prices

Facing increasing pressure from its rivals, Apple on Tuesday introduced a 1GB nano as well as cutting prices on its Shuffle line. The moves are designed to make Apple's ubiquitous players more affordable to a broader segment of the market, as well as to respond to price pressures from rivals.

Analysts have been predicting a smaller nano since before Macworld in January. However, many predicted after no Shuffle refresh at the yearly convention that the small player's days were numbered.

The new nano would carry the same feature set as its larger siblings, and would be able to hold about 240 songs or 15,000 photos, and would be priced aggressively at $149 USD.

"The iPod is the world's most popular digital music player with over 40 million sold, and now even more music lovers can experience the unrivaled combination of iPod and iTunes," said vice president of Worldwide iPod Marketing Greg Joswiak.

The new unit would be available immediately from Apple's online store its retail outlets as well as through its Apple Authorized Resellers.

Along with its announcement of the smaller nano, prices of the Shuffle models were cut from $99 USD to $69 USD for the 512MB version and from $129 USD to $99 USD for the 1GB. Apple's continuing strength in the flash-based player market as well as better prices on flash memory likely contributed to the price drop.

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