AN iPOD A DAY...

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Author: Newman, AnneBurrows, Peter

HEADLINER: STEVE JOBS

For years, Apple Computer Chief Executive Steve Jobs endured endless complaints about Apple's fast-falling market share in the PC business. But now that he's king of the hill in the digital-music market, Jobs seems intent on grabbing share with a vengeance.

With Apple's iPod family already in control of 55% of this fast-growing market, Jobs on Feb. 23 unveiled new lower-priced models. The company reduced the price of its existing 4-gigabyte iPod mini by $50, to $200, to make room for a new 6-GB model costing $250. And to goose sales of the poorly selling iPod photo, it dropped the price of that model to as little as $350, from $600.

"They're basically competing at every price point now. We think they've locked out the competition for at least the next six months," says Piper Jaffray analyst Gene Munster. Jobs couldn't be reached for comment but in the past has said, "It's nice to see what we can do without that 5% market share ceiling." But not so nice for Apple's e-music rivals.

The McGraw-Hill Companies, Copyright 2005

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By Peter Burrows

Edited By Anne Newman