pricing

There were no shortage of details regarding Apple’s much rumored radio service leading up to today’s keynote address. The rumors said Apple was planning on introducing a free, ad-supported radio service, similar to Pandora, that would be highly integrated with a tweaked model for its iAd business. Apple has now officially unveiled the service dubbed ‘iTunes Radio’ and provided some details on exactly how it will work during its keynote presentation this morning at Moscone West in San Francisco.

The new iTunes Radio app is built in to the iOS radio app, and works on the Mac and Apple TV as well. As rumored, iTunes Radio will be free, supported by ads. In a twist, however, iTunes Radio will be completely free (free of ads) if you’re a subscriber to iTunes Match:

The Music app has a beautiful new design and includes the new iTunes Radio, a free Internet radio service featuring over 200 stations and an incredible catalog of music from the iTunes Store®, combined with features only iTunes can deliver. iTunes Radio is the best way to discover new music. When you tune into iTunes Radio on your iPhone, iPad, iPod touch, Mac®, PC or Apple TV®, you’ll have access to stations inspired by the music you already listen to, Featured Stations curated by Apple and genre-focused stations that are personalized just for you.

As we reported prior to today’s event, the underlining technology is based on Apple’s iTunes Genius feature with iTunes Radio tailoring the experience to your iTunes usage. Apple says there will be Siri integration, and also aims to offer users “access to exclusive “first listen” premieres from top selling artists.”
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When T-Mobile introduced the iPhone 5 for $99 down, many were quick to point out that the device would cost much less than the $649 Apple charges, costing customers a total of $579 after completing T-Mobile’s $20/month, 24 month payment plan. However, T-Mobile didn’t talk much about the fact that $99 down price point was introductory pricing that would eventually increase. Today marks the end of T-Mobile’s introductory pricing, as noted by TmoNews, with the carrier increasing the minimum down payment on an iPhone 5 for qualified customers to $149 for the entry level 16GB model.

All other models of the iPhone will see the same $50 increase with the 32GB and 64GB models now requiring a $249 and $349 down payment on T-Mobile 24 month payment plan. Despite the increase, it still gives T-Mobile the cheapest pricing on iPhone 5 around with the total cost of the entry level 16GB model now $629. That’s $20 less than the retail price of the unlocked device.

Although today marks the end of introductory promotional pricing for the iPhone 5 on T-Mobile, the carrier will continue to offer its trade in offer on previous generation iPhones to allow customers to get an iPhone 5 for $0 down.
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We had many of the details for the 13.3-inch Retina MacBook Pro ahead of today’s unveiling, but Apple Senior Vice President of Worldwide Marketing Philip Schiller just confirmed the device’s specs and pricing. As we told you earlier, the new 13-inch Retina MacBook Pro comes in two base configurations (with a third 2.9GHz dual-core i7 upgrade option available) and gets many of the enhancements that the 15-inch version received. Schiller noted that the device is 20 percent thinner than the previous generation 13-inch MacBook, and it includes a 2,560-by1,600 Retina display with 29 percent higher color contrast and 75 percent reduced reflection.

Apple also announced that the device would start at $1,699 for the base configuration, and it will start shipping today. Apple also showed a second configuration would be offered for $1,999. Both options below are configurable to a 2.9GHz dual-core Intel Core i7.

• 2.5GHz dual-core Intel Core i5 processor (Turbo Boost up to 3.1GHz) with 3MB shared L3 cache
• 2.5GHz dual-core Intel Core i5 processor (Turbo Boost up to 3.1GHz) with 3MB shared L3 cache

Some of the device’s specs—that Apple is now listing on its website— are below:
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Had you heard? Apple’s got a ‘little’ event going on at the newly-decorated California Theatre tomorrow where they will FINALLY showcase the iPad Mini, new Mac Minis, a Retina 13-inch MacBook Pro as well as software like iBooks 3.0 and iTunes 11.

First, the bad news: We’ve heard that the some of the iMacs that we found earlier have been pushed so far back that they might not warrant inclusion at the event this week. That doesn’t mean they are cancelled but because there have been some issues with the products and the including them is a “gameday decision”. We’re obviously hoping they make the docket.

And now the good news:
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By now you probably know that the U.S. Department of Justice launched an antitrust lawsuit against Apple and two publishers this month following an investigation into Apple’s eBook pricing agency model. Three publishers, including Hachette, HarperCollins, and Simon & Schuster, decided to reach a settlement with the Department of Justice to return to Amazon’s set-your-own price wholesale model. Meanwhile, Apple, Macmillan, and Penguin will take the fight to court.

Interestingly, a report from The Wall Street Journal, which is owned by the HarperCollins’ parent company News Corp, suggested Apple was only ever trying to continue its App Store business model. The Wall Street Journal’s L. Gordon Crovitz described visiting Senior Apple Executive Eddy Cue to discuss changing Apple’s policies for publications. He quoted Cue as comparing book pricing to apps and not wanting to treat publications differently than app developers:

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Yesterday, reports from The Wall Street Journal claimed the United States Justice Department was planning to launch an antitrust case against Apple and the country’s five largest book publishers related to claims of e-book price fixing. The European Commission announced in December that it would begin investigating whether Apple and book publishers “engaged in illegal agreements or practices that would have the object or the effect of restricting competition.” Many believe the probes are a direct result of Steve Jobs’ comments documented in Walter Isaacson’s Steve Jobs biography where the late CEO said: “Amazon screwed it up.”

“We told the publishers, ‘We’ll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that’s what you want anyway… They went to Amazon and said, ‘You’re going to sign an agency contract or we’re not going to give you the books.’ “

Today, new court documents from a request by Apple to throw out a class action case over e-book price fixing revealed Apple’s stance on the issue. PaidContent explained: “Apple argues that its business plan was to sell as many e-books as possible and that it had no incentive to raise prices.” Meanwhile, Apple argued: “Why would Apple offer Amazon’s Kindle app on the iPad.” The company’s comments sidestepped all claims about Apple allegedly conspiring to slow Amazon’s entrance into the tablet market with Kindle Fire:

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