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Tuesday, March 16, 2004, 11:30 am PT (02:30 pm ET)

Notes: Reducing the cost of iPods, Aluminum displays?

Reducing the cost of iPods
"In the coming months, Apple will begin to unfurl its strategy of making a little less profit on the average iPod, but selling a lot more of them," claims Jon Fortt of the Mercury News. With the debut of a Hewlett-Packard branded version of the iPod due in a few weeks, Apple will begin this process of losing some profit margin on the players in favor of market dominance.

The iPod mini—which has much lower margins due to its component costs—may not be as directly effected by the HP deal, but is expected to see a price reduction later this year. The company is also rapidly developing a 4th generation of the original iPod, which is expected to be widely available by the end of the year, AppleInsider sources said. But more on this topic a little later.

It will be interesting to see how much of a window period will exist between Apple's launch of revised iPods and HP's further adoption of each model.

Yet another display rumor
Although it seems unlikely, one member of the AppleInsider forums thinks he may have seen an advanced product shot of a new Apple display during a routine Apple presentation.


Artist rendition

According to the reader, a slide shown very briefly during the presentation depicted a Power Mac G5 beside a large LCD display adorned by a similar aluminum frame. While Apple is usually extremely protective of its intellectual property, accidents have and will continue to happen.

Apple HD displays wrapped in aluminum frames have been widely rumored since the fall, and their failure to appear has lead to some disappointment among consumers. The most recent rumors suggest an introduction alongside revised Power Macs in the coming weeks, with sizes ranging up to 30-inches.