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Apple, Bono In The “Red”


Apple lived up to its reputation as one of the greatest spin-meisters in tech Friday when it announced a special iPod nano designed in conjunction with singer/activist Bono.

For each sale of the iPod nano Red—basically the same refreshed version of the gadget Apple paraded in September— $10 will go to The Global Fund, an organization that helps women and children in Africa affected by HIV, AIDS, malaria, and tuberculosis.

“It’s wonderful to see this incredible level of commitment from companies that are willing to lend their creativity in the fight against AIDS in Africa, the greatest health crisis in 600 years,” U2 lead singer and humanitarian Bono said in a press release.

Perhaps Bono should have taken off his trademark sunglasses before checking out the monetary figures. Nanos cost $199 each, so $10 represents just 5 percent of revenue that’s going to charity. Note too that the gadgets already have comfortable profit margins, costing about $72.24 to manufacture (see Apple Slices iPod Nano Costs).

Apple Slices iPod Nano Costs

That Apple could gain such praises from Bono, long known for his outspoken approach towards helping the disenfranchised in Africa and other regions (see Bono’s Charity Starts Podcasts), underscores the company’s innovation in marketing.

Bono’s Charity Starts Podcasts

Marketing skills ought not be underestimated, since they’re probably why Apple has 25 percent of the world’s portable digital music players, even though its players are generally more expensive than comparable models from rivals (see Can Anyone Stop The iPod?).

Can Anyone Stop The iPod?

Apple has long used savvy marketing schemes to promote its products even when innovations in the technology haven’t moved forward.

For example, last February the company touted as news the creation of an Apple-branded stereo docking system and a $99 leather iPod case, the latter of which one analyst called “a joke” (see Mac Minis Get Intel Chips).

Mac Minis Get Intel Chips

To be sure, the Red represents the first real campaign to tout innovations to the Nano since they came out in September.

For example, the refreshed music players are now encased in colorful aluminum, likely in response to complaints that the original Nano’s screen and body were susceptible to scratches, which in turn led to lawsuits (see More iPod Suits Blast Apple).

More iPod Suits Blast Apple

Contact the writer: ECubarrubia@redherring.com

ECubarrubia@redherring.com

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