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Apple's iPOD may not be the big hit that Jobs hopes for!

When Apple Computer launched its new iPod MP3 device last week, CEO Steve Jobs said the product would be "the hottest gift this holiday season," but retailers say the response may be more tepid.

To be sure, the iPod, which goes sale next month, is generating buzz among Mac devotees, but that interest may not translate into strong sales, according to retailers contacted by CNET News.com.

While the major national chains aren't yet taking preorders for the devices, an informal survey of retailers found that consumers are curious to see the machines, although somewhat cautious about their $399 price tag.

CompUSA said that some local stores were taking preorders for the devices. Circuit City has yet to decide whether it would carry the new devices. Micro Warehouse reported that the company is accepting orders for the devices now, and demand has been higher than expected. And Apple specialist Bitznbytes said "We had a lot of calls on them, but some people are concerned about the price. At $400, some people seem a little hesitant, but it looks like a great product".

While analysts praised Apple's entry into the MP3 market, they expressed concern that the cost of the device--$50 to $100 more than some competitors--could be a sticking point for some consumers. The fact that the iPod only works with the Mac OS could also limit its potential, analysts said.

Jobs said that Apple will look into making the iPod compatible with Windows, but for now, the company is focusing on the Mac OS.

News source: CNet News

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