- February 17, 2004
“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”.”
- February 10, 2004
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
- January 25, 2004
“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.”
- January 15, 2004
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.”
- January 14, 2004
“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
- January 13, 2004
“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.”
- January 12, 2004
“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.”
- January 12, 2004
“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
- January 8, 2004
“LAS VEGAS, Consumer Electronics Show, January 8, 2004 -
- January 4, 2004
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.
- December 31, 2003
“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.”
- December 30, 2003
“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.’”
- December 26, 2003
“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.”
- December 21, 2003
- December 15, 2003
- December 8, 2003
“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.”
- December 5, 2003
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.
Editor’s note: The very successful iPod should make 2004 an interesting year for our favorite audio device.
- December 1, 2003
“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.’”
- December 1, 2003
- November 28, 2003
At today’s all-day shopping event Apple Stores nationwide are offering 10% off music related products including the iPod.