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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

Steve Jobs talks iPod, iTunes and the recent HP deal

  • January 25, 2004
  • Apple,

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

  • January 15, 2004
  • Apple,

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

  • January 14, 2004
  • Apple,

“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

BusinessWeek: Apple + HP = iPod Forever

  • January 13, 2004
  • Apple,

“Despite critics who decry Apple’s proprietary audio format, this deal shows that Steve Jobs’s digital-music strategy is a winner. [...]

‘He was smart enough to go do something that was beneficial to the music industry in creating a paid environment that protects their interests. He’s pretty much golden in terms of getting deals with the labels,’ says Tim Bajarin, CEO of consultancy Creative Strategies. That Jobs could become the most powerful guy in digital music from a platform with a mere 5% or less of total market share is like Houdini pulling a Hummer out of his hat.”

Macworld UK: MS’ video-player plans ‘misguided’

  • January 12, 2004
  • Apple,

“Microsoft’s planned move into the digital-video player market is misguided, and can never match the success of music players, says Apple CEO Steve Jobs.

In an interview with the New York Times Jobs explains that high price and long up-load times means Microsoft’s move into this business area is “misguided”.

Jobs said: “There’s just no equivalent of headphones. While a music player gives you a concert-hall experience, watching video on a tiny three-inch hand-held screen is nothing like the experience of watching a movie in a cinema or even on TV.”

AppleMatters: The HP-iPod Deal is Brilliant

  • January 12, 2004
  • Apple,

“The recent HP-Apple announcement makes the significance of the iPod mini announcement at Macworld well, look minute. Finally it looks like Steve Jobs has not let his ego get the best of him, and done something that is right for Apple as a public company. Let

HP and Apple Partner to Deliver Digital Music Player and iTunes to HP Customers

“LAS VEGAS, Consumer Electronics Show, January 8, 2004 -

Apple to webcast Macworld Keynote

Apple will be webcasting a live QuickTime stream of the Macworld 2004 Keynote on Tuesday, January 6 at 9 am Pacific time/12 pm Eastern time. Apple CEO Steve Jobs is expected to announce new products for 2004. Will he announce low cost, mini iPods? iLounge will be reporting the event live as it happens via the iLounge IRC channel with guest reporter Trent Lapinski of Apple-X.net. As usual, any iPod related news coming out of Macworld will be posted under iPod News as well.

iPod battery lawsuit to be filed in January

  • December 31, 2003
  • Apple,

“Another growing source of complaints surrounds Apple’s wildly-popular iPod line of digital music players, which many enthusiasts believe will get an upgrade at Macworld with the introduction of smaller, less-expensive models and a range of case colors.

In California, a lawsuit seeking class-action status is expected to be filed January against the company over the claim that Apple’s warranty does not run long enough to cover problems with the player’s battery.”

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

  • December 8, 2003
  • Apple,

“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

  • December 5, 2003
  • Apple,

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

  • December 1, 2003
  • Apple,

“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

  • December 1, 2003
  • Apple,
“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.

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