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Salkever: iPod mini too expensive for storage size

BusinessWeek’s Alex Salkever puts into words what many are thinking of the new iPod mini. “Less music in a device marginally smaller at about the same price. Get it? I didn’t, and few others will, either,” he writes. “Even Jobs’ Jedi-esque powers of reality dispersion can’t alter the unfavorable math behind Apple’s new offering. Here are the hard numbers. The new iPod mini will cost $249. It will offer 4 gigabytes of capacity on its hard drive. By comparison, the entry-level iPod now costs $299 and has 15 gigabytes of disk space. The iPod mini’s cost per gigabyte is $62.50. In the entry-level iPod, it’s about $20. So Apple is asking customers to pay three times as much per gigabyte. I have one word for that. Ouch.”

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