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In partnership with MusicMatch's online stores, Dell will offer songs for download for 99 cents. It's also offering an iPod clone with longer battery life and a lower cost than Apple. Made by Creative, the Dell DJ player will sell for $ 299 for the 20 GB version after a mail-in rebate, or $ 249 for the 15 GB version. Unlike the iPod, it plays Windows Media files, and works with Real and Microsoft jukeboxes on the PC. Dell claims 16 hours of battery life, twice as long as the iPod.
Dell reckons that it can ship
higher volumes than Apple, allowing it to work with lower margins. The
iPod contributed a useful $ 121 million to Apple revenues in the last
quarter: Apple hasn't disclosed iPod margins, but executives have said
they're in line with computer sales, and the company is happy with that.
Apple's gross margins were 26 per cent in the last quarter, while Dell's
were 18 per cent. |