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Apple creates new iPod division

Apple has created a new division within the company to sell and promote the iPod. Jon Rubinstein, who has led Apple’s hardware engineering efforts, will run the new division. Timothy Cook, head of the company’s worldwide sales and operations, will now lead a newly organized Macintosh division. The moves were announced today in a company-wide internal email sent by Apple CEO Steve Jobs. “This organizational refinement will focus our talent and resources even more precisely on our industry-leading Macintosh computers and the wildly successful iPod,” an Apple spokesman told Reuters.

Eminem to battle Apple over copyright

“A federal judge says rapper Eminem’s copyright infringement claims over use of his song “Lose Yourself” in a commercial for Apple Computer can go forward.

Apple featured a 10-year-old boy singing the Oscar-winning theme song to the rapper’s movie “8 Mile” in an ad on MTV for the computer company’s iPod music player and iTunes music service.

On Monday, US District Judge Anna Diggs Taylor ruled that the suit brought by Eminem’s publishing company can proceed against several companies, including MTV parent company Viacom and advertising agency TBWA/Chiat/Day.”

iPod and iTunes helps Apple rank 23rd out of top 100 electronic retailers

The Mac Observer is reporting that This Week in Consumer Electronics (TWICE) magazine has ranked Apple 23rd out of a list of top 100 electronic retail chains - moving up from 34th.

“‘For the editors of TWICE, there is little doubt that the iPod was, and still is, a big factor in the sales growth of Apple’s retail stores.

“That’s quite a leap for Apple to 23rd spot,” Alan Wolf, a senior editor at TWICE, told The Mac Observer. ‘The iPod is a driving force behind this jump we believe, as well as the popularity of the iTunes Music Store. They have such a unique niche, sort of like Sony, where you find the brand everywhere and it transcends everything. Apple is in that same category.’(http://www.macobserver.com/article/2004/05/14.7.shtml’”

Students wear iPod t-shirt all month to win iPod

“Jaffe has been wearing the same bright yellow shirt since April 5, hoping to win Apple’s promotional competition.

Jaffe is one of 30 members of the Kappa Sigma fraternity who are participating in Apple’s new promotional campaign that requires participants to wear a bright yellow shirt from April 5 to April 29 in order to win free iPods.

‘It’s a crazy stunt that 30 crazy frat guys are pulling off,” said Matt Van Horn, a student representative for Apple.’

iPod outsells Macs

For the first time, the iPod has outsold Macintosh computers. “We feel great,” Steven P. Jobs, Apple’s chief executive, said in an interview. “We sold a lot of Macs, but we’ve sold more iPods in the quarter than all the Macs put together.”

807,000 iPods sold, up more than 900 percent

MacMinute reports that Apple on Wednesday posted a net profit of US$46 million, or 12 cents a share, for its fiscal 2004 second quarter ended March 27, 2003. These results compare to a net profit of $14 million, or 4 cents per share, in the year-ago quarter. Revenue for the quarter was $1.909 billion, up 29 percent from last year. Apple said it shipped 749,000 Macs and 807,000 iPods during the quarter, representing a 5 percent increase in CPU units and a 909 percent increase in iPods over the year-ago quarter. “Apple had a great quarter with 29 percent revenue growth and 200 percent earnings per share growth year-over-year,” said Apple CEO Steve Jobs. “We experienced growth in most areas of our business-most dramatically in selling a record 807,000 iPods, up more than 900 percent over the prior year.”

Free iPod personalization promo extended

MacMinute is reporting that Apple has extened its iPod personalization promotion, which allows customers to get free custom laser engraving on any new iPod purchased between March 28 through June 26, 2004. The engraving normally costs US$19 extra.

Beatles to sue Apple over music business

“Here it is: The Beatles are indeed about to sue Apple Computers over the iPod, iTunes and Apple Music. You may recall that I broke the story last year that Apple Computers long ago signed an agreement with the Beatles’ Apple Records that they would never ever ever have a company called Apple Music and that they would never ever ever go into the music business.”

iPod mini to boost Apple profit

The iPod mini has “fueled a 22 percent increase in the company’s [Apple] stock in the past two weeks.” “Shares of Cupertino-based Apple have risen to their highest since September 2000 as investors bet the business card-sized iPod mini, released last month, will boost profit.”

Apple legal targets PocketPC iPod emulator

StarBrite, developers of the pPod PocketPC iPod emulator software has been asked by Apple legal to change the name and to revise the interface so it does not resemble an iPod. StarBrite has complied with Apple’s requests and has changed the name to pBop and changed the layout so the touch wheel is now located between the menu and row of buttons. “Apple felt pPod was being ‘passed off’ as an Apple iPod,” says Ryan Kelly, a Starbrite spokesperson. “We were surprised to hear this as we have heard of no one buying a Windows-powered Pocket PC application being confused they are buying a hardware device.”

iPod sales to reach $1 billion this year

“In a research report Monday, he said the success of the iPod demonstrates Apple’s “tech know-how and strong brand” and could make the company “relevant again.”

And the iPod isn’t expected to be small business for Apple. Milunovich estimates iPod’s revenue to come in around $1 billion this year, contributing 15 cents to per-share earnings. By fiscal year 2006, the analyst said revenue for the iPod could double to $2 billion, adding 25 cents to the EPS.”

Update: Braving the cold to get an iPod mini

  • February 28, 2004
  • Apple

Rajeev and Jeremy have reported with an update from the Grand Opening of Apple Store SF. Rajeev described the opening as ‘hectic’ as hundreds of people swarmed the front entrance while San Francisco Mayor Gavin Newsom, former Mayor Willie Brown, and Apple CEO Steve Jobs cut the ceremonial ribbon for the opening at 10 am PT. Apple sold 200 $259 grab bags marked ‘Do you feel lucky?’ containing; Apple Airport Extreme Base Station, Bluetooth adapter, Apple Wireless Keyboard, Apple Wireless Mouse, .Mac account, Keynote (presentation software), iLife ‘04 and a 10% gift card. In addition, some (1 in 6) lucky individuals also received Silver iPod minis and 15GB iPods, but one lucky person got a 40GB iPod. Both Rajeev and Jeremy got an iPod mini in their bags.

A couple of hardcore Apple fans are enduring the cold San Francisco night as they camp out in front of the new Apple Store San Francisco to be the first 200 people to be able to purchase a $259 grab bag valued at $600 - some containing iPod minis. Two San Jose State Apple Campus Reps, Rajeev and Jeremy sent us an email describing the situatuion as they await the Grand Opening at 10 am Saturday morning.

“My name is Rajeev B. and I’m sitting here with my partner Jeremy C…. we are both SJSU Apple Campus Reps and we have been out here since 1:30 pm PT today.  It’s getting cold but we have been sitting bundled up.  The line is about 30 or so people and it’s currently 7:49 pm.  There is a guy with an iSight broadcasting a live feed that updates every 2 minutes at ifoapplestore.com. So far everything seems cool. The lights inside the store have gone off for the night but everybody here is really nice and friendly and and we’re all helping out each other and waiting for our chance at the 200 grab bags that are going be available at store opening at 10 am.  These bags are valued at over $600… and some will contain an iPod mini.”

MacMinute reports details of Enimen vs. Apple lawsuit

  • February 25, 2004
  • Apple

MacMinute - As reported yesterday, Eight Mile Style, Eminem’s music publisher, is suing Apple claiming that the company used one of the rapper’s songs—“Lose Yourself” from the 2002 film “8 Mile”—in an iTunes television commercial without permission. MacMinute has obtained the 15-page lawsuit, which was filed on Feb. 20 in U.S. District Court in Detroit, Michigan. The suit—which also names Viacom, its MTV subsidiary and the TBWA/Chiat/Day advertising agency—said “Eminem has never nationally endorsed any commercial products and… even if he were interested in endorsing a product any endorsement deal would require a significant amount of money, possibly in excess of $10 million.”

Apple vs. Apple, Judge owns iPod

  • February 25, 2004
  • Apple

“Mr Justice Mann, of the High Court Chancery Division, revealed today that he owns an Apple iPod – the neat little portable computer which allows its user to download thousands of music tracks over the internet. He asked lawyers if this disqualified him from hearing a trademark dispute between Apple Computers and the Beatles company Apple Corps over the computer giant’s iTunes online music store.

Lord Grabiner QC, for Apple Computers, said he was delighted to hear the judge had an iPod and added: ‘We would perhaps have sent you one free if that would not have been improper.’”

Related news: FOXNews: The Beatles Sue Apple Computers Over IPod, ITunes

Eminem sues Apple over iTunes ad

  • February 24, 2004
  • Apple

“Rapper Eminem’s music publisher is suing Apple Computer Inc., claiming the company used one of the hip-hop superstar’s songs in a television advertisement without permission.

Eight Mile Style filed the copyright infringement suit late last week against Apple, Viacom Inc., its MTV subsidiary and the TBWA/Chiat/Day advertising agency.

At issue is an ad for Apple’s iTunes pay-per-download music software, in which a 10-year-old sings Eminem’s “Lose Yourself.” The suit claims the commercial aired on MTV beginning in July 2003 and ran numerous times for at least three months. It also appeared on Apple’s Web site.”

Analyst says Apple “stands to benefit greatly” from Pepsi partnership

  • February 17, 2004
  • Apple

“The analysts speculate that if half the 100 million tracks available through the Apple/iTunes promotion are redeemed, “it will increase iTunes downloads over 100 percent”. This will also increase Apple’s market share in comparison to rival vendors.

The report looks at the true strategy behind the store—increasing iPod sales. As most competing players utilize an incompatible file format, IDC says: “Apple stands to develop a built-in market for the iPod”. It agrees that if users use and choose iTunes then they will be more likely to buy Apple’s music player in preference to competing products.

The conclusion? “Apple stands to benefit greatly form this promotion and carry its momentum forward”.”

Apple sued over iPod battery life

  • February 10, 2004
  • Apple

Apple today filed its quarterly report with the Securites and Exchange Commission. The report listed several lawsuits against Apple, one of which was five plaintiffs;  Craft, Chin, Hughes, Westley and Keegan “filed purported class action cases in various Northern California courts alleging misrepresentations by the Company relative to iPod battery life. The complaints include causes of action for violation of California Civil Code Section 17200 (unfair competition), the Consumer Legal Remedies Action (“CLRA”) and claims for false advertising, fraudulent concealment and breach of warranty.  The complaints seek unspecified damages and other relief.  The Company is beginning its investigation of these claims.  Plaintiffs have filed a motion to consolidate these claims in San Mateo County.  The Company has opposed the motion on the grounds that Santa Clara County would be the most appropriate venue for consolidation.”

Steve Jobs talks iPod, iTunes and the recent HP deal

Q: Hewlett-Packard (HPQ ) just announced that it would resell the iPod and load iTunes on its home PCs starting this summer. That’s a major change of course for Apple. Why? Have you approached other PC makers about doing similar deals?

A: HP looked at the choices they had, and they thought what we were doing was the best in the industry, and they expressed an interest in working with us. The more we discussed it, the better it sounded. Look, we don’t make our own printers. We use HP’s printers. They’re better at making printers than we are. HP decided that we’re better at making portable music players and online music stores, and there is no shame in any of that. I think it’s pretty smart.

Q: The iPod is Apple’s first non-Mac hit in years. What’s the significance of that to you?

A: It’s very exciting to be able to apply Apple’s innovation, engineering excellence, and marketing skill in a market where we don’t have that 5% market-share ceiling to see what we can do. And it feels good.”

iPod accessories added $14 million to Apple’s Q1 revenue

MacMinute reports: “An estimated 733,000 iPods were sold, accounting for $256 million in revenue. This doesn’t include iPod accessories, which added up to another $14 million. Plus, the iPod numbers would have been even higher, but Apple’s supply couldn’t keep up with the demand, Anderson [Apple Chief Financial Officer] said.”

Apple sells 733 thousand iPods, up 235%, profits are up

“Apple today announced financial results for its fiscal 2004 first quarter ended December 27, 2003. For the quarter, the Company posted a net profit of $63 million, or $.17 per diluted share. These results compare to a net loss of $8 million, or $.02 per diluted share, in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter’s revenue. The quarter’s results include an after-tax investment gain of $3 million which increased earnings per diluted share by $.01. Apple shipped 829 thousand Macintosh units during the quarter, up 12 percent from the year-ago quarter, as well as 733 thousand iPod units, up 235 percent from the year-ago quarter.”

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