Apple UK is considering reducing the quoted price of the iPod mini following a backlash of complaints about the substantial price mark-up on the US price, according to a report in the Guardian.

The US version of the iPod mini will sell for $249 – equivalent to £162. Apple UK has said that it would sell the device for £38 more – £199. Although this price incorporates 21 per cent VAT, the result of Apple's efforts to harmonize VAT across Europe.

Apple vice president Greg Joswiak said that the price announcement was "subject to change" and that the company would settle on a UK price "closer to the availability date, simply because of the volatility of the currency exchange".

"What we don't want to do is lock Europe into a price now, see the dollar continue to weaken, and have done all of ourselves a disservice by pricing too early."

He dismissed pre-show rumours that Apple was to announce a $99 iPod, saying: "All this nonsense about us doing a $99 player was just that. We weren't going to do a player that does 30 songs - it's very uninteresting to us."