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January 08, 2004

Expectations

Expectations can be a dangerous thing. The other day, Apple released the coolest new iPod thingy. (For a more technical description try Dusting My Brain or Tech Ronin). Now I don't have an iPod (nor does anyone in the immediate family) but this could be the straw that breaks the camel's back and hence cause me to cough up the cash.

So what is the problem? A whole bunch of rumour sites have been discussing this product (without having all the facts) and trying to set a price on it. They completely ignore the fact that Apple charge a premium for the being 'cool'. Seriously, you pay more for a Ferrari than a Toyota - they are both cars - one comes with a premium brand and image and the other doesn't. Here is a premium miniature music player - it has style, it will work perfectly, it integrates into your environment. Someone (Apple) has taken the time to get it right. On the other hand, you can find something bigger (physically) or uglier for less money anytime you like and you won't pay for the premium image. Correspondingly you will have to keep convincing yourself that the trade-off (premium coolness for price) was worth it. In some case (severe use of the ugly stick) you might even have to hide your cheap alternative out of embarrassment.

The hassle was the expectation set up by the rumour sites and people then feeling "cheated" when the price was dearer. Look here, I enjoy the rumour sites (especially CARS) immensely but I do not then get disappointed when they get it wrong. You have to read this sites with a little self control.... otherwise you will end up like the guy in the previous post with custard in your boots!

For a light hearted look at the expectation game (with a side dig at comment spammers) check out this post (this is only a partial quote):

Angry rumor site readers lashed out at Apple today regarding the pricing of Apple's new iPod mini. While Apple's list price for the new device is $249, rumor sites had clearly pegged the price at $100.
"What happened?!" asked irate rumor reader Kurt Hager. "One day the price is $100 and the next it's $249! I feel so... betrayed!"
...
"That's it! I'm done with Apple 4 ever!" wrote DellUser346, adding "Check out the new Dell Digital Jukebox! [Ed: Isn't that the one hit with the ugly stick?]"
AppleyGoodness23 posted that "Apple can only abuse its customer like this thirty or fifty more times before we start to think of other computing alternatives!"
"Cheap Viagra!" exclaimed WeMarket4U.
Hesten said "Apple has an obligation to read the rumor sites to find out... uh... what fair market prices for their products are! I mean, how else are they going to do it?

Posted by Ozguru at January 8, 2004 12:01 PM

Comments

Oz - get the new mini iPod! I think the pods are well worth the $ (and I have two of them.) Great post, btw :-)

Posted by: Cindy at January 8, 2004 12:01 PM

I have old 5G ipod. I paid and will pay the extra money for any thing that is well designed and fills a need/want of mine. If someone feels cheated 'cause a rumor doesn't come true should expect a life filled with many dispointment. My 5G is still cranking away and I have no plans to replace it just yet, but that mini-ipod looks nice.

Posted by: Skipjack at January 8, 2004 12:01 PM

I must be missing something in this. I have always understood that a rumour had either no, or very little foundation in fact or truth. If people must read ruours then why get upset when they discover the truth is different? Or is this how the conspiracy theorists get their rocks off?

Posted by: The Gray Monk at January 8, 2004 12:01 PM

CARS strikes again with an exclusive men's room interview of Stan Ng (iPod Line Manager) which explains the pricing very succinctly:
It's $50 more than the flash players that it's better than and it's $50 less than the base iPod which has more capacity! I know some of you live in this fantasy world where everything is priced less than what it costs to make it...

Posted by: ozguru at January 8, 2004 12:01 PM

Xgrid You know the new mini iPods I mentioned the other day are cool. But the coolest announcement on the day was not about iPods. AtAT ran the story:Some of you may remember Xgrid back when it mysteriously surfaced as the subject for a newApple discussion l...

Posted by: GDay Mate at January 8, 2004 12:01 PM