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CNET: Would $100 iPod compete or cannibalize?

  • December 30, 2003
  • Apple

“The widely reported rumors, which Apple declined to address, suggest that the company will unveil an inexpensive iPod that will cover the end of the market dominated by cheaper MP3 players from Creative, Rio and Dell.

The risk in such a move would be undercutting brisk sales of iPods, which now range in price from $299 for a 10GB drive to $499 for a 40GB drive. In Apple’s fourth quarter, ended Sept. 27, sales of the iPod generated $121 million in revenue, up 9 percent from the prior quarter and 128 percent from a year ago. The company has said the iPod business is profitable.

‘I don’t think Apple currently needs to sell a $100 iPod at risk of cannibalizing sales of existing models and sacrificing gross margins,’ said Tim Deal, analyst with Technology Business Research in Hampton, N.H. ‘Apple already has the market lead, so I don’t see the need for (the $100 version) when people are buying $299 and $399 models.’”

“Apple has caused a tidal wave of change in the music industry”

  • December 26, 2003
  • Apple

“In the not-too-distant future when compact discs are museum pieces and vinyl records are near fossils, 2003 will be remembered as the year digital music stepped into the mainstream. [...]

Mark Mulligan, an analyst with Jupiter Research, said: “A lot of the important building blocks have now been put into place. [...]

Effectively a device for storing music files, the iPod helped kickstart a rush to move music from the compact disc to the portable hard disc drive.

In an effort to boost iPod sales, Apple launched its own online music service in May 2003, offering music lovers a wide range of tracks for 99 cents.”

iPod designer Jonathan Ive awarded highest British design honor

  • December 21, 2003
  • Apple
“Few people recognise Jonathan Ive. Few could tell you what he does. But most of us know, admire and use his work. Ive, who has just been awarded the highest British design honour with his appointment to the RSA’s Faculty of Royal Designers for Industry, is ‘Mr Mac’. He is the British designer who has reinvented the computer, the personal stereo and much else besides. By banishing beige boxes and replacing them with sculptural, easy-to-get-to-grips-with products, such as Apple’s iMac and iPod, Ive has transformed the way we look at the electronic stuff that surrounds us.”

Advertising Age names Apple ‘Marketer of the Year’

  • December 15, 2003
  • Apple
“Mr. Jobs’ publicity machine garnered more than 6,000 iPod and iTunes stories in major publications worldwide. That compares to paid media spending in the first eight months of 2003 of only $10 million on iTunes and $9 million on iPod, according to TNS Media Intelligence/CMR. Overall, Apple’s paid media spending was only $69 million in the first eight months of ‘03.”

RollingStone: Steve Jobs on iPod, iTunes and more

“Bringing iTunes to Windows was obviously a bold move. Did you do much hand-wringing over it?

I don’t know what hand-wringing is. We did a lot of thinking about it. The biggest risk was that we saw people buying Macs just to get their hands on iPods. Taking iPods to Windows - that was the big decision. We knew once we did that that we were going to go all the way. I’m sure we’re losing some Mac sales, but half our sales of iPods are to the Windows world already.”

Jobs on How To Succeed in 2004

Business 2.0 has created a list of executives and their advice for success in 2004. In the ‘How to Create Cool Technology’ category, Steve Jobs mentions video editing software and the iPod.

“A few years later, we didn’t know anything about MP3 players, but our people looked at what was out there with a critical eye and combined that with what we already knew about design, user interface, materials, and digital electronics. That gave us the iPod.”

Editor’s note: The very successful iPod should make 2004 an interesting year for our favorite audio device.

iPod & iTunes Tops Prophet’s List of 2003 Branding Hits

“The insightful brand strategy behind the iPod, iTunes and the latest part of this digital music package, the iTunes Music Store, wins Apple kudos for one of the clear brand hits of 2003, according to Prophet, a leading management consulting firm specializing in the integration of brand, business and marketing strategy.

‘We’ve identified a short list of three of this year’s brand hits and two of its misses,’ said Prophet Chief Executive Michael Dunn.‘Combined, they provide a very succinct lesson in the importance of understanding brand’s value to customers, how well the organization delivers on what the brand stands for, and how to make it stretch (or not) into new space to help the business grow.’”

Apple Launches iPod-a-Day Giveaway

“From November 28 to December 24, we’ll be giving away a 10GB iPod every day. Download iTunes and create a new iTunes Music Store account, and you’ll be automatically entered* into our daily drawing. Once you create an account, your name remains eligible until December 24, so the earlier you sign up, the more chances you have to win.”

Apple In-Store Event Offers 10% Off

  • November 28, 2003
  • Apple

At today’s all-day shopping event Apple Stores nationwide are offering 10% off music related products including the iPod.

Apple Stores: After-Thanksgiving Shopping Event

  • November 20, 2003
  • Apple
“Someone you know loves music You’ll want to kick off your holiday shopping at the Apple Store. We’ll be hosting an all-day shopping event designed especially for the music lovers on your list. Whether they’re Mac or Windows users, you’ll find a scintillating array of gifts, plus, a few surprises in store for you.”

The Daily Californian: Singing a Different Tune

  • November 20, 2003
  • Apple

“It’s a little known secret that Apple barely makes money off iTunes, despite the software’s popularity—nearly all revenues still go toward the copyright holders: the music labels.

By luring people in with the free iTunes, Apple put itself in a position to sell them its popular iPod mp3 player which is uniquely compatible with the iTunes software and is selling like hot cakes. Each $499 iPod brings in $175 in profit.”

Ad Age names Steve Jobs, Apple and iPod in top 50 brands

  • November 17, 2003
  • Apple

“Apple Computer CEO Steve Jobs this year becomes the first person to be named to Advertising Age’slist of leading brands three times. He’s made the Marketing 100 twice, as well as this year’s section, the even more selective Marketing 50.

Not bad for a guy who never had a traditional marketing career. This year, Mr. Jobs wins for turning the charged debate over the illegal downloading of music over the Internet into a marketing opportunity. His dual platform approach includes successful marketing of the iPod music player in tandem with iTunes, its online music store.”

Apple: Extreme Sports High School Tour

  • November 11, 2003
  • Apple

“Sponsored by action sports event coordinator ASA, a tour reaching 35 public high schools in seven major metropolitan areas provides students action-packed entertainment from extreme sports professionals and an anti-tobacco message in partnership with the Campaign for Tobacco-Free Kids.

On the sidelines of assemblies, students can see, hear and test drive iPods. In awe of how much music the iPods can store and how cool they are to use, many students are adding iPods to their wish lists.”

Jobs on iPod and iTunes

In a financial analysts meeting on Wednesday, Steve Jobs, Apple CEO “rebuffed the idea that the iTunes music store should work with MP3 players other than the iPod, or conversely, that Apple’s iPod should work with other music download services.”

“‘Why should we work with another music store when we are working with the Microsoft of music stores?” Jobs said. “I’d rather spend our engineering dollars on enhancing the iPod and the iTunes music store.’”

Apple Store: Save $9 on shipping on iPods

A word of advice when ordering iPods from the Apple Store. Sometimes iPods are shipped directly from an overseas warehouse. In this case, they always come by international 3-day shipping, regardless of what shipping option you chose. If you paid the extra $9 for 2 day shipping, then you’ve wasted your money. I complained and Apple refunded my $9.

MacMinute: iPod, iTunes heavily promoted on Stern, Cane show

“Apple has increased its advertising presence for iTunes and iPod on New York’s WXRK (K-Rock) radio station as of late. According to numerous MacMinute readers, live ads are being read regularly by Howard Stern on his morning talk show for the iTunes Music Store and the iPod. Stern stresses the fact that both products are now Windows compatible. He has also been giving away 40GB iPods to callers. Meanwhile, The Cane Show is currently holding an “iPod Song of the Day” contest in which winners receive a free iPod. Cane also mentions the iTunes Music Store and its pricing throughout his show.”

BusinessWeek: Everybody Wants A Piece Of The iPod

“The risk is that Apple could end up where it has so often before—with only a high-end niche of a market it pioneered. To keep that from happening again, it’s betting Windows users will be drawn to Apple’s trademark elegance and ease of use. Moreover, the emerging MP3 player business will remain highly fragmented, much like the early days of the PC market, when Apple prospered with an 11% share. In the short term, at least, the launch of the Windows Music Store is expected to galvanize iPod sales.”

Apple promotes iTunes with Internet ads

Apple, in its continuing campaign to promote iTunes for Mac and PC has released several Internet ads on CNET’s Downloads.com. Featuring the same dancing silhouettes as the television commericials, the Internet ads have been placed on several download pages for Kazaa Media Desktop, Morpheus, Emusic Download Manager and other peer-to-peer/music download applications to lure readers to download iTunes.

Steve Jobs: “We’d love to have a $100 iPod!”

“Apple’s charismatic CEO sat down with NEWSWEEK’s Steven Levy—after introducing the Windows version of iTunes and the upgraded iTunes Music Store last week—to discuss the world of digital music. [...]

Still, $300 to $500 is an obstacle to a lot of people.
No, of course I don’t think it’s too costly. Fifty million homes have DVD players that cost that kind of money. For music lovers, I don’t think it’s a hurdle at all. There are sneakers that cost more than an iPod.
       
Some think you wouldn’t want to sell a $100 iPod because the profit margin would be so low.
What are you talking about? We’d love to have a $100 iPod! We just don’t know how to do it right now. We’re constantly trying to make cheaper iPods. We’re working on the next step.”

QuickTime Video of Apple Music Event Now Available

Fow your viewing pleasure, Apple has now released the QuickTime video of yesterday’s Introduction of iTunes for Windows, as presented by Steve Jobs.

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