In its quarterly report (SEC form 10-Q) filed with the Securities and Exchange Commission today, Apple summarized several iPod and iTunes related details.
iPod sales increased $138 million or 124% during the third quarter of 2004 compared to the same period in 2003. Sales of iPods rose $545 million or 243% in the first nine months of fiscal 2004. iPod unit sales of 860,000 for the quarter show a year-over-year increase of 183%.
“This growth was driven by continued strength in demand for the iPod, introduction of the iPod mini, increased expansion of [our] iPod distribution network, and continued success of the iTunes Music Store,” Apple said.
Net sales of Apple’s other music products (iTMS and iPod related services and accessories) increased 508% in the third quarter thanks to an increase in overall iPod unit sales and the introduction of the iTMS in Europe.
Apple also noted that it has sold approximately 3.7 million iPods since the device debuted in 2001.
“I’ve been testing the system in a $54,000 BMW 330Ci convertible, lent to me for a few days by BMW. I have tried several different iPods in the car, including a brand-new, fourth-generation model. My conclusion: The BMW iPod adapter works, but in a pretty crude way that will likely leave the iPod cult hungering for more. It’s a decent first step, but that’s all. [...]
A couple of times, in several days of tests, I’d start the car and the system would freeze up. I had to switch to a different playlist to jolt the iPod into action. And once, when I increased the volume, it suddenly skipped a song.”
“Apple has agreed to pay undisclosed royalties to a company that challenged the core concept behind the iTunes Music Store.
E-Date Corp. owns European and US patents that describe a “system and method of distributing [commercial] digital content over electronic and wireless networks”. The company claimed that ITMS was just such a system, and as such required Apple to license its intellectual property.”
John C. Dvorak for CBS MarketWatch explains that RealNetwork’s recent iPod song compatibility hack for its Harmony jukebox software is screwing up Apple’s plan to put iPod technology into Motorola cell phones.
“This grand scheme only works if the platform is secure. You can’t sell an iPod phone and lock in all this easy money if people can buy from just anyone or just use bootleg music, can you? So along comes the RealNetworks hack, which screws up this scheme. Suddenly the iPod looks a lot like any other MP3 player except for its good looks, and those go away when it’s in the phone.
This explains why Steve Jobs and Apple wouldn’t let RealNetworks license any of its technology when asked last April. You can be certain that the Apple-Motorola scheme hatched before that and probably right after Ed Zander, Jobs’ friend, took over Motorola in January. With this scheme they had to keep the iPod locked down and that meant no licenses for interlopers and potential competitors.”
“Sony lost the plot”, said professor Dr. Michael Bull, the world’s leading expert on personal stereos, speaking to new London iPod club, Playlist. “The iPods’ mixture of function and pure technological beauty in an age in which we still get fed-up with impossibly complex technologies makes it iconic,” he said. “Events like Playlist show how impossible it is to categorize people’s listening habits,” he explained.
Apple is offering a $200 mail-in-rebate for college students when they purchase an iPod together with a PowerBook or iBook. Since the price of iPods at the Apple Store for Education is $269 (20GB) and $369 (40GB), any college student buying a new laptop can pick up a 4G iPod for as little as $69. This rebate does not apply to the iPod mini, or the 12in CD-ROM version of the iBook, and is valid through September 25th.
EarphoneSolutions.com is offering the Shure E3c and Shure E3 earphones for $122 + shipping (around $6) in a Back to School promotion. Enter coupon code F122E3 during checkout. Offer expires August 22nd. EarphoneSolutions.com coupon is an exclusive and private offer for iLounge. EarphoneSolutions.com is an Authorized Shure dealer and the earphones come with a full 2 Year Warranty replacement/repair by Shure and a 30 day money back guarantee.
“Toshiba Storage Device Division (SDD), the industry pioneer in small form factor storage, today announced a new family of 1.8-inch hard disk drives (HDDs) that deliver the industry’s highest capacities in this category with its 30GB “MK3006GAL” and 60GB “MK6006GAH.” These drives also feature improved shock tolerance, power consumption and vibration control for better performance in mobile consumer electronics devices.
To achieve this industry-leading capacity, Toshiba has set a new benchmark for areal density in the 1.8-inch HDD category at 93.5 gigabits per square inch. This has allowed Toshiba to pack 30GB of data onto a single 1.8-inch platter, an increase of 50 percent over current models, delivering drives that are ideally suited for in-demand consumer electronics products such as mobile audio players and mobile notebook PCs.”
This formal announcement confirms Toshiba’s earlier revelation in Taiwan of the new 60GB drive, for which the company said Apple had already placed orders. The new details on size (60GB is the same thickness as current 40GB iPods; 30GB is same size as current 20GB models) and power consumption (lower) suggest that future iPods based on the new drive will be in cases of the same size as today’s models, but should feature even better battery life.
“CodeWeavers, which specializes in software that lets Windows programs run on Linux, said on Monday that it has a new version of its software that adds support for Apple Computer’s iTunes.
The company said CrossOver Office 3.1 adds support for the jukebox and music download software. The version is currently in preview form and is being made available only to existing CrossOver Office customers.”
Looking for a fourth-generation iPod at a discount? Amazon.com is selling new-in-box units at the following shipped prices, with no sales tax outside of Washington State:
These are great prices; just be aware that iLounge remains cautious in recommending fourth-generation iPod purchases until Apple resolves the audio interference issues we previously identified.
ResQ Systems, LLC announced today that their iPodResQ 24-Hour Nationwide iPod repair program is now supporting the new 4th generation 20GB and 40GB iPod™.
iPodResQ is the only service of its kind offering 24-hour turnaround on repairs and nationwide, overnight pickup & delivery at the user’s location. The service is now stocking parts and performing repairs on 4th generation iPod models.
“That’s the message from the “Save the iPod’’ campaign. Holmes Wilson, an organizer of the Web-based movement, warns that the Inducing Infringement of Copyrights Act now pending in Congress threatens to silence the popular music player. In other words, your right to bear beats is in danger. [...]
The Induce Act would give the music industry and other copyright holders new legal grounds to sue any business that profits from encouraging people to illegally distribute songs, movies, software, games and other copyrighted works. The proposed law targets popular online file-swapping services such as Kazaa.”
iPod Music Liberator allows users to copy music directly from their iPod to any computer, filling in a missing feature of iTunes. You see, iTunes only allows for a one-way transfer of music from your computer to your iPod. But what if you want to move music to another authorized computer? What if you want to make a backup of your music? What if your computer crashes and you lose all of the music on your computer? What if you buy a new computer and need to move your music? What if ... ? Use the iPod Music Liberator for all of your iPod music copying needs.
MacMinute is reporting that Apple Chief Executive Officer Steve Jobs is hospitalized and recovering from successful surgery for pancreatic cancer. Using a PowerBook to e-mail from his hospital bed, Jobs wrote to tell Apple employees that, “I had a very rare form of pancreatic cancer called an islet cell neuroendocrine tumor, which represents about 1 percent of the total cases of pancreatic cancer diagnosed each year, and can be cured by surgical removal if diagnosed in time (mine was). I will not require any chemotherapy or radiation treatments.” Jobs will return to his Cupertino office in September, presumably after the Apple Expo in Paris.
iLounge wishes Steve the speediest and fullest of recoveries, and invites our readers to leave a “get well” message for Steve in this comments thread, which we will forward to Apple. (Negative messages will be deleted and their posters banned; please use good judgment in leaving messages for a man recovering from cancer.)
The iTunes Music Store has recently added speeches from day one and day two of the Democratic National Convention: America 2004 held in Boston, Massachusettes. The free download includes speeches by former Vice President Al Gore; former President Bill Clinton; Senator Hillary Rodham Clinton; former President Jimmy Carter; Senator Ted Kennedy; and Ron Reagan, son of former President Ronald Reagan and many more.
iRemote allows you to control iTunes through a completely skinnable interface, using global hotkeys, and even a DeskBar which allows you to have the control in your taskbar! It has a keyboard shortcuts manager to make it easier to change keyboard shortcuts. The interface and the way iRemote works can be completely customized through the use of skins.
RealNetworks has responded to Apple’s statement (below) saying “consumers, and not Apple, should be the ones choosing what music goes on their iPod. Apple has suggested that new laws such as the DMCA are relevant to this dispute. In fact, the DMCA is not designed to prevent the creation of new methods of locking content and explicitly allows the creation of interoperable software. We remain fully committed to Harmony and to giving millions of consumers who own portable music devices, including the Apple iPod, choice and compatibility.
Harmony follows in a well-established tradition of fully legal, independently developed paths to achieve compatibility. There is ample and clear precedent for this activity, for instance the first IBM compatible PCs from Compaq. Harmony creates a way to lock content from Real’s music store in a way that is compatible with the iPod, Windows Media DRM devices, and Helix DRM devices. Harmony technology does not remove or disable any digital rights management system.”
Apple today released a statement in response to RealNetworks’ recent announcement that they had created a method to offer iPod-compatible song downloads through its new Harmony software. “We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions under the DMCA and other laws. We strongly caution Real and their customers that when we update our iPod software from time to time it is highly likely that Real’s Harmony technology will cease to work with current and future iPods.”
Time Magazine’s Wilson Rothman named the new 4G iPod the “Gadget of the Week” and noted that “you should know that internally the new iPod is a ground-up reconstruction, and its really compelling applications — the ones that very well might get the goat of anyone unable or unwilling to upgrade — are still secret. All that Apple is saying is that there’s more to this than what’s being publicized.”
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