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Cingular reduced the iTunes phone price from $249.99 to $149.99, facing criticism due to limited storage. Explore the impact on consumers, sales, and Apple's strategy with iTunes on mobile devices.
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Price Lowered by 40% • Cingular started selling it for US$249.99 with a two year contract. Over the past weekend, the operator cut the price by $100 to $149.99
Downsides • The $250 price tag • Storage capacity that is capped off at 100 songs caused consumers and reviewers to not like the phone • Both the iPod Shuffle and iPod Nano offer more storage capacity at a lower or equal price • Motorola sold about 83,000 Rokr phones per week in the first weeks after the official unveiling • The firm's top-selling Razr on average sells 500,000 units per week
Out Comes • Apple CEO Steve Jobs said that they were just seeing what they could do with their ITunes • Razr v3i and the Slvr L7 are expected to be the second and third Motorola models to feature that Apple software to allow ITunes
Questions • Are you interested in ITunes on your cell phone? • Should ITunes just stick to the computer and Ipod?
Works Cited • http://www.macnewsworld.com/story/iaA8emmv8MZMZv/Cingular-Slashes-iTunes-Phone-Price.xhtml