Market Dings Apple (AAPL) On iTunes Price Cut
January 6, 2009 by Douglas A. McIntyre
Apple (AAPL) cut the prices of some of the songs available on its iTune music service and the market did not like it at all.
According to a number of media sources, some songs will be available for as little as $.69. Apple SVP Phil Schiller said the firm would have three levels of pricing at: $69, $.99, and $1.29.
It is not clear at this point what portion of the price cuts will be shared by record labels and their artists.
Skeptics will claim that Apple’s iPod sales are slowing due to the maturity of the product and the recession which has badly hurt consumer electronics. By offering better prices for content, Apple may find it easier to attract new customer and keep its current ones.
Whatever the reason, Apple’s shares are off slightly at $93.86 against the overall market which is up. Apple’s first day at Macworld is usually a good one for the stock.
Not this year
Douglas A. McIntyre
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