Apple on Wednesday posted its highest quarterly revenue and net income in the company’s history thanks to strong holiday sales of iPods. Apple greatly exceeded Wall Street expectations with a net profit of $295 million, or 70 cents a share, for its fiscal 2005 first quarter ended December 25, 2004. Revenue for the quarter was $3.49 billion, up 74 percent from $2 billion in the year-ago quarter.
Along with its record earnings, Apple released several iPod and music sales details. The company reported that it sold more than 4,580,000 iPods during the quarter, representing a 525 percent increase in iPod units compared to this time last year. All iPod models brought in more than $1.2 billion in revenue for Apple during the quarter. Apple’s music division, which includes the iTunes Music Store, iPod services and accessories, accounted for $177 million of the first-quarter’s revenue, a 277 percent increase year-over-year.
Apparently in response to the release of these financial results, Apple’s stock (Nasdaq: AAPL) is up an impressive 11.82% to 73.20 in after-hours trading.
Griffin Technology today announced the BlueTrip, a wireless transmitter/receiver for broadcasting audio from an iPod to a home stereo. Using Bluetooth technology, BlueTrip consists of a Bluetooth transmitter that connects to an iPod along with a stylish Bluetooth receiver that hooks to your home stereo via RCA, mini jack, or optical audio cables. BlueTrip is expected to ship in the first quarter of 2005 at a price of $149.
Kirk McElhearn, author of the book “iPod & iTunes Garage,” announced today an update to his popular book. The update adds a 3-page iPod shuffle “cheat sheet” that aims to help readers “grasp the basics of this hot new device; that is, to help them determine what it is, how it works, and how it differs from other iPod models.” The update is available immediately as a PDF download from his weblog.
Battery Technology Incorporated (BTI), maker of iLounge’s 2004 Accessory of the Year The iPod Battery, today announced March 2005 availability of a fan-requested product: a three in one iPod FM radio receiver, transmitter, and remote control cable. The new accessory will retail for $79 and permit real-time tuning of five preset radio stations, connecting through the iPod’s headphone port.
For photos of the prototype unit, click “Read more” below. The final shipping hardware will change dramatically in physical appearence, including a glossy white plastic front that’s more resilient, and will include an impressively simple way for the iPod to receive FM radio broadcasts… without having to install software on your PC or Mac.
BTI also showed The iPod Battery 3 ($59), which adds 8-10 hours of playback time to an iPod with 4 replaceable AA batteries. March availability is planned, and the company may well rename the Battery 3 before shipment.
iLounge has discovered that Apple’s newly announced iPod shuffle does not offer support for high-quality AIFF or Apple Lossless audio files. According to Apple’s technical specifications page for the iPod shuffle, the tiny player only plays AAC, MP3, MP3 VBR, Audible and WAV, unlike the iPod mini, 4G iPod and iPod photo models. This omission joins the player’s lack of screen, Dock Connector port, and accessory port. It is not currently known if the iPod shuffle was intentionally crippled by Apple to not allow users to play these two high-quality formats, or if the technology inside the device simply not capable of handling them.
Apple’s iPod shuffle product page, which compares the size of the device to a pack of gum, features a rather humorous warning: “Do not eat iPod shuffle.”
Gizmodo has uncovered a new XM Satellite Radio trademark that should raise some eyebrows—”SkyPod.”
Artists and creative types are being invited to show-off their skills by designing HP Tattoos for the iPod. A UK website that sells pre-printed Tattoos, has provided an upload area where budding designers can preview and submit their designs.
Green Day plan to donate all their iTunes royalties they make with their current single, “Boulevard of Broken Dreams,” to the American Red Cross to help with tsunami relief.
In a research note to clients on Wednesday, Merrill Lynch analyst Steven Milunovich said Apple’s new iPod shuffle could take the top position in the flash-based MP3 player market in the next few quarters. “If Apple can ramp up production, Apple could take the No. 1 position in the flash market in the next couple of quarters. If Apple hits 5 percent share this quarter, that could be 300,000 units,” Milunovich said. “If it takes off, the number could be much higher, possibly passing the 1million mark.”
Milunovich pointed out that Apple currently has 65 percent of the total digital music player market, compared to flash’s 29 percent share. According to research from IDC, the flash player market has three times the units as the hard-disk drive-based (HDD) music player market, but about the same revenue ($2.3-2.5 billion). “Now that 4.5 million HDD iPods were sold last quarter (possibly 2 million in December), it was time for Apple to attack the next market with a lower cost flash-based iPod shuffle,” the analyst said.
Milunovich dismissed the notion that consumers will balk at the lack of a display on the iPod shuffle. “Some have indicated that the lack of a display will be an issue, but we are less concerned,” he said. “The $99 version holds 120 songs and the $149 holds 240—does one really need a display with that few songs? We believe this is a better option than a 60-song version with a display for $149. If a display is need then one needs to move up to he HDD iPods at $249+. We believe this also ensures that cannibalization will be limited while snaring more in the iTune/iPod net.”
Sonnet Technologies has announced the PodFreq photo, a new version of its FM transmitter designed for the larger 40 and 60GB iPod photo models. Based on the current PodFreq for 4G iPods, PodFreq photo broadcasts music through any nearby FM radio with “unmatched clarity and signal strength.” The $99.95 accessory encases the iPod photo in a durable, translucent shell to provide added protection. It has access to controls and the headphone jack, and features FireWire and mini-USB ports that enable syncing and charging without having to remove the iPod. PodFreq photo requires no batteries and ships with a car charger.
Gadget Accessories has introduced two new cases for Apple’s 4G iPod. Its Crystal Clear case ($8.99) is a durable plastic case that features an ultra clear body with cutouts for the click wheel, headphone jack, hold switch and dock connector. The company also announced a new silicone skin ($9.99) in three translucent colors. The form-fitting case is available in white, blue and pink.
Applian Technologies has introduced its new Replay Music, which records streaming music (from both subscription music services and online radio stations), splits songs into individual MP3s, and tags each file with the artist, title, genre and album name using Gracenote’s MusicID song recognition technology. Replay Music, which is only available for Windows users, is priced at $49.95.
A huge new collection of photos (140+) from the first day of the San Francisco Macworld Expo has been posted to the iLounge photo galleries, including photographs of hitherto undisclosed iPod accessories and other amazing stuff on the show floor. You can see the gallery here. Stay tuned for more photos of Day 2 thru 4 of the Expo.
During his keynote presentation at today’s Macworld Conference & Expo, Apple CEO Steve Jobs revealed that more than 4.5 million iPods were sold in the December quarter—500 percent growth year over year. Jobs said the total number of iPods sold to date now stands at over 10 million units, with 8.2 million of those being sold in 2004. He said the 10 millionth iPod was sold on December 16, 2004.
Jobs also said that more than 230 million songs have been purchased from the iTunes Music Store worldwide since it was launched in April 2003. He said that Apple is now selling approximately 1.25 million songs a day and that the company is on pace to sell nearly half a billion songs a year. Jobs also noted that over 1 million pre-paid iTunes cards have now been sold.
Apple has posted a commercial for its newly announced iPod shuffle, which features the song “Jerk It Out
While potentially a mundane topic to some of iLounge’s readers, Apple today introduced the “Made for iPod” certification, a badge that iPod accessory developers can display to differentiate their Apple-authorized accessory products from unauthorized ones. The Made for iPod badge addresses a subject of increasing concern to iLounge in recent weeks - the proliferation of certain low-quality and potentially dangerous iPod accessories that may harm your hardware, even when used as advertised and intended. Currently, it appears that vendors receiving the badge are only those whose products interface electronically with the iPod, rather than case makers.
According to some vendors on the show floor at Macworld San Francisco, Apple’s motivations behind the Made for iPod program may be equal parts financially driven, marketing driven, and consumer protection driven, perhaps in that descending order of importance. iLounge was told that the Made for iPod badge was originally proposed as a potential royalty stream for Apple - a means by which the company would collect revenues from sales of “authorized” accessories, and suggested that vendors might be able to charge even more for officially sanctioned accessories. Key to the program is Apple’s continued interest in licensing its proprietary male Dock Connector plugs and female ports - now also called the “iPod Connector” - while warning iPod owners about the dangers of insufficiently tested accessories that may create electrical disruptions in iPod hardware.
Like other company seals - such as Nintendo’s once-famous Seal of Quality - the Made for iPod program may have benefits for consumers, or may just be an opportunity to increase company licensing revenues while offsetting marketing costs. As iLounge has itself witnessed and heard external accounts of peripherals that wreak havoc with iPods and their batteries, but remains concerned about the slowly upward-creeping price of iPod accessories, we will continue to closely monitor this story in the months ahead.
At Macworld Expo in San Francisco today, iLounge spotted new iSkin mixed color silicone eVo2 cases with additional new twists: a plastic pop-in Click Wheel control protector, and co-branding with famous recording artists such as the Chemical Brothers and numerous professional sports teams, including the entire NBA. These special edition eVo2 cases will be offered in team colors and feature team graphics on their Click Wheel protectors.
iSkin also previewed a new version of its eVo case, featuring an exclusive anodized aluminum clip system that integrates beautifully with the rubber case body. Better yet, the company has reengineered its upcoming case bottoms to permit easier Dock Connector access, addressing a key iLounge concern in past reviews, and plans to roll out legitimately improved plastic belt Revoclips for upcoming eVo cases as well.
Shure has announced the its E4c sound isolating earphones, the latest addition to its line of premium audio accessories. Like the others products in the company’s consumer line, the E4c earphones utilize Shure’s sound isolation design to “prevent ambient noise from compromising the listening experience and to deliver the ultimate in audio quality.”
Shure said the new isolating earphones incorporate the same components used by professional musicians to monitor their performances on stage, and feature high-definition drivers with Tuned-Port technology for an ultra-wide frequency soundstage with brilliant highs and extended bass. The E4cs are also the lightest in Shure’s family of E Series earphones and are a good match for iPod users.
Shure is showcasing its roster of audio accessories at Macworld Conference & Expo in San Francisco all this week.
Digital Lifestyle Outfitters (DLO) today announced a special offer: everyone who purchases an iBoom Boombox at dlodirect.com during the Macworld Conference & Expo—which runs Jan. 11 through Jan. 14—will receive a free Boombag. The Boombag, a carrying case made specifically for the popular iPod iBoom accessory, features a shoulder strap, pockets for storage and padded neoprene for protection. The DLO BoomBag is also on sale separately for $29.99 (normally $44.99).
Apple has released iTunes 4.7.1 and iPod Updater 2005-01-11. The new version of iTunes includes support for the new iPod shuffle and other performance improvements. iPod Updater 2005-01-11 includes iPod shuffle Software 1.0 for iPod shuffle. The update also contains the same iPod software included in iPod Updater 2004-11-15 for all other iPod models.
On a day in which Apple CEO Steve Jobs promised “a lot of firsts,” the company unquestionably delivered: most importantly, a $499 iPod-matching “Mac mini” was introduced with a January 22 release date, followed by the announcement of “iPod shuffle,” the least expensive and smallest capacity iPod at a $99/512MB configuration. Both products were touted as the cheapest ever introduced by Apple in their respective categories, and offered in modestly upgraded versions at $50 and $100 premiums. Prices for their higher-end brethren were left unchanged, such that iPods now range in price from $99 to $599, and Macintosh computers from $499 to $2999.
For the full story of all of the major announcements at Apple CEO Steve Jobs’ keynote speech in San Francisco, please click on Read More. Today’s major announcements are as follows: the introduction of the iPod shuffle, a $99-$149 flash memory-based iPod, the introduction of the Mac mini, a $499-$599 Macintosh computer to attract ‘switchers’, a collection of new iPod shuffle accessories from Apple, changes to iTunes, a Motorola phone with an ‘iTunes client,” updated sales figures, and new Mac software.
Apple today announced it has teamed up with Mercedes-Benz, Volvo, Nissan, Scion, Alfa Romeo and Ferrari to deliver iPod integration with their car stereo systems this year. The iPod Integration Kit for Mercedes-Benz will debut this April in the 2006 Mercedes-Benz M-Class, and will be available for most other 2005 and 2006 models later this year. Volvo will offer two iPod connectivity options—The Volvo iPod Adapter and an FM transmitter—for their entire 2005 US model line. Nissan, Alfa Romeo and Ferrari will announce details of their iPod integration solutions later this year. These companies join BMW and MINI Cooper who began providing integrated iPod solutions in 2004.
“Music lovers want to listen to their digital music in their cars, and we’re delighted to be working with Mercedes to offer a fully integrated solution,” said Steve Jobs, Apple’s CEO. “The iPod Integration Kit for Mercedes-Benz features the quality and attention to detail Mercedes is famous for, perfectly complementing Apple’s innovative iPod.”