Reporting its fiscal 2005 third quarter financial results on Wednesday, Apple announced that it shipped more than 6.1 million iPods during the quarter, topping all analyst estimates, which ranged from 4.8 million to 5.55 million.
With today’s report of Apple shipping 6,155,000 iPods during the quarter—about 800,000 more than last quarter and 5.3 million more than a year ago—the total number of iPods sold now stands at over 20 million.
Apple’s net profit for the quarter was $320 million, or 37 cents per share, on $3.52 billion in revenue—the highest earnings and revenue in the company’s history. These results compare to a profit of $61 million, or 8 cents a share, and revenue of $2.01 billion last year.
In an SEC filing, Apple said all iPod models accounted for more than $1.1 billion in revenue during the quarter, an increase of 343 percent compared to last year. Apple’s “Other Music Products
Etchamac has expanded its custom laser etching service to include the iPod and iPod mini. The company uses a CO2 laser to professionally etch the image or text (or both) of your choice directly to the backside of your iPod. Text costs $30 for both iPods and iPod minis, while an image and text costs $50 for full-size iPods and $40 for iPod minis.
“The process is done at low power and can not damage your iPod,” explains Etchamac. “The process is quick, clean, and permanent. From family pictures to corporate logos, line art, or your favorite team. You give us the art and we will etch your iPod or Powerbook.”
ThinkFree has announced ThinkFree Office 3 Show, iPod Edition, new software that allows iPod users to create, edit and transport PowerPoint presentations and use them on any PC or view them on color screen iPods. ThinkFree Office 3 Show, iPod Edition is currently in beta and will be released in August for $39.95.
“Bringing the mobility of professional expression to another level, ThinkFree Office 3 Show, iPod Edition lets anyone create and edit powerful presentation graphics on any PC or Mac, then (with the color iPod or portable multimedia player) display them anywhere, from the campus to the golf course,” says ThinkFree. “This means that sales professionals, executives and students can leave their laptops at home and can literally put sophisticated graphic presentations in the hands of their prospects.”
PumpPod is a new “portable training program” for color screen iPods and other handheld devices.
Each “PumpPod Trainer” is a collection of detailed JPEG images that are synced to your iPod, allowing you to view the exercises, instructions and tips just like you would a normal photo. The workout training is available in several levels—from cardio to abs to weights. The company behind PumpPod said that most PumpPod Trainers, which start at $29, “make up a progressive 4-6 week exercise program.”
“PumpPod is like having an elite personal trainer that fits in your pocket and goes where you go,” the company says. “The bright images and simple instructions demonstrate how to do exercises properly and effectively for better results. Best part? PumpPod is a visual training aid that won’t get in the way of you, your music, or your workout. We wouldn’t have it any other way.”
In a phone call to the father of the 15-year-old boy who was fatally stabbed over his iPod last week in Brooklyn, Apple CEO Steve Jobs conveyed his sympathies and told the man not to hesitate to ask if there was anything Jobs could do for him.
“I didn’t know who he was,” Errol Rose, father of the slain Christopher Rose, told The New York Times. “He called me on my cellphone, at 4 maybe. Or maybe it was 5.”
“He told me that he understood my pain,” Rose said. “He told me if there is anything—anything—he could do, to not be afraid to call him. It really lightened me a bit. Some people talk to you like they’re something remote,” Rose said. “He was so familiar. After every word, he paused, as if each word he said came from his heart.”
“We live in a world which is changing rapidly,” Rose said. “We have the technology that can give us the iPod and everything else, but it’s not all these things. We have to work on the minds and the hearts. We’re failing these kids. We’re not loving them like we’re supposed to.”
Clarifying ambiguities over the actual “generation” or version number of the updated iPods released this Tuesday, a senior executive with Apple Computer confirmed to iLounge this evening that the new color-screened devices are still considered by the company to be “4th generation” (4G) iPods.
While the executive did not provide further naming details, Apple has been calling the new models “iPod with color display” in various support documents and software release notes. The company has publicly referred to the last two major iPod revisions, the iPod With Dock Connector (with a touch wheel and four touch-sensitive buttons) and the Click Wheel iPod, as “third-generation” and “fourth-generation” models, respectively. With Tuesday’s iPods still considered part of the fourth-generation family, one can now safely assume that Apple is saving the “fifth-generation” moniker for an all-new iPod yet to be revealed, perhaps conveniently at the same time as version 5.0 of iTunes.
For only the third time in iLounge’s nearly four-year history, the Editors of iLounge have awarded a flat “A” rating to an iPod—the newly introduced color fourth-generation iPod (20/60GB). Previous iPods to receive this rating were Apple’s breakthrough third-generation iPod, reviewed in May 2003, and the second-generation iPod (Mac version), reviewed in August 2002.
From our reviews of the new iPods, which are now on the site:
“It would have been easy to pass on re-reviewing Apple’s newest 20GB iPods—after all, they’re little more than cheaper, lower-capacity versions of the 30GB iPod photo released only four months ago. That simple fact has elicited groans and tears from the most devoted iLounge readers, particularly those who purchased black-and-white-screened iPods only recently.
But to view the new iPods from the perspective of existing owners would clearly miss the significance of what Apple is now offering to new potential buyers: a color-screened, photo-capable 20GB digital music player with unparalleled ease of use and the best software package on the market, all at a lower suggested retail price than any major competitor. Similarly, its bigger 60GB brother and black-bodied U2 clone are more affordable than ever before, while continuing to possess all of the key features that made them stand out at their October 2004 introductions. Owners of black-and-white-screened iPods may complain, yet there’s little doubt that they’d quickly upgrade if given the right incentive.”
Bricks-and-mortar Apple Stores have started to receive their first shipments of the new 20GB color iPods introduced this morning, including the new standard 20GB iPod ($299) and 20GB U2 iPod ($329), and are selling 1GB iPod shuffles and 60GB iPods at their newly reduced prices ($129 and $399, respectively). Additionally, Apple Store employees are now wearing green promotional T-shirts touting the company’s collegiate free iPod mini (with Mac purchase) program.
Visit our iPod photo gallery for unpacking photos of the new color U2 iPod.
Apple has now released iPod Updater 2005-06-26, which includes iPod Software 1.2 for “iPod with color display,” iPod software 3.1 for iPod with Click Wheel and iPod software 1.4 for iPod mini. The company said the update contains the same software versions as iPod Updater 2005-03-23 for all other iPod models. According to the brief release notes, iPod Updater 2005-06-26 adds integration with iTunes 4.9 for downloading and listening to podcasts.
As anticipated, Apple today announced that it is merging its iPod and iPod photo lines, dropping the “photo” naming and adding color screens to all full-size (white) iPod models.
The simplified lineup features a new 20GB color screen model for $299 (the same price as the older monochrome version), a 60GB model for $399 ($50 cheaper), and an updated iPod U2 Special Edition with a color screen for $329 ($20 cheaper). The company has apparently dropped the 30GB iPod photo model, which sold for $349.
Apple also said that starting today iPods will offer “an easy to use Podcast menu, including bookmarking within a Podcast and the ability to display Podcast artwork in color” to coincide with the release of iTunes 4.9.
Unsurprisingly, all of the new full-size iPod models support the photo and album artwork features of the previous iPod photo models, allowing users to view their photo libraries on the iPod’s screen or on a TV. Apple said the new 20GB iPod holds up to 20,000 photos, compared to the 60GB version which holds up to 25,000. Both can import photos from a digital camera with the optional iPod Camera Connector.
iLounge has noted Apple’s gradual shift away from using the word “photo
Creative Technology’s warning of sagging demand for its devices is no indication that the MP3 player market as a whole is suffering, a Wall Street analyst said Monday. Creative earlier today cut its fourth-quarter sales outlook and said it will have an operating loss, citing weaker-than-expected demand for its products.
“We believe that iPod’s continued dominance of the portable audio market, especially as shuffle gains market share for flash-based players, is likely having an impact on Creative,” Piper Jaffray senior analyst Gene Munster said in a research note obtained by iLounge. “In addition to Apple’s market share gains in the flash segment, we believe the June quarter is a seasonally slow time for this market and we do not expect blow-out iPod numbers from Apple (expect iPod units of 5.5 million for June, up from 5.3 million in March). We do, however, believe that Apple will significantly benefit from back-to-school and holiday buying in the September and December quarters.”
Munster also said that his recent retail survey shows that Apple’s presence in stores remains significantly greater than Creative. “We spoke with MP3 player sales reps at 100 U.S. retail stores about what portable audio devices they recommend to customers and why,” he said. “58% of reps recommend some variation of iPod, while only 16% of salespeople would point their customer to a Creative device. We believe these checks provide another indication that Apple is holding its ground, if not gaining momentum, as the leader in portable audio.”
Piper Jaffray analyst Gene Munster said on Friday that Apple “will likely not show significant upside for the iPod in the June quarter” with sales of 5.5 million units, but that the iPod business will “reaccelerate” in the seasonally strong September and December quarters.
Munster’s positive expectations are based on results from a recent survey of MP3 player sales reps at 100 U.S. retail stores (non-Apple), which on average 58% of recommended the purchase of an iPod over a competing device.
Munster said in a research note obtained by iLounge that 63% of sales reps recommend an iPod model in the 5GB or larger category, in most cases recommending the 6GB iPod mini or 20GB iPod. In the 5GB or less category, 52% of sales reps recommend an iPod (4GB iPod mini or iPod shuffle).
The analyst said that 32% of salespeople who recommend the iPod do so because of the device’s ease of use. Munster said that 21% see the “massive eco-system” of iPod accessories as the top reason to own an iPod.
Meanwhile, the top reason given by 25% of sales reps for recommending something other than an iPod was its lack of an FM receiver. Approximately 14% said its close integration with iTunes is too limiting, and an another 14% said there are some players that have a better design or are smaller than the iPod.
The 8.4 million iPods Apple shipped in 2004 accounted for nearly one third of all digital audio players last year, a recent report by research firm In-Stat found. Various models of the iPod made up 30.2% of the combined worldwide hard drive and flash-based music player market in 2004.
The firm said revenue for MP3 players reached approximately $4.5 billion, “a remarkable increase of almost 200% over 2003.”
In the same report, In-Stat also said that “the exploding market” for portable audio players is expected to reach over 104 million units by 2009, up from 27.8 million units in 2004. “Drivers for this booming market include falling prices, the availability of legitimate subscription and pay-per-download online music sites, smaller hard disk drives, and increasing Flash memory capacities,” the firm said.
As part of “a growing skirmish between the record labels and digital music master Apple,” both Sony BMG and EMI are releasing more and more copy-protected CDs that can’t be transferred to an iPod.
“CDs with the protective technology prevent users from posting them on the Internet and allow users to burn only three copies onto other discs, which themselves can’t be copied again,” reports Variety. “Sony BMG is already selling about half its discs with the technology, while EMI releases its first this summer. But the technology also prevents consumers from transferring songs onto an iPod… because the technology uses Microsoft’s Windows Media software.”
Variety says that both labels hope to reach a deal with Apple that will allow iPod owners to legally rip and transfer music from the CDs to their iPod for listening on the go.
“By launching the copy-protected CDs without iPod compatibility, the labels are raising the stakes in an ongoing conflict between Apple and the rest of the music business, which wants the tech company to open its proprietary iPod and let others sell antipiracy-protected songs that work on the device,” the publication reports.
Britain’s Queen Elizabeth II has joined the iPod generation. UK tabloid The Sun reported Friday that she is now the owner of a silver 6GB iPod mini, and that Prince Andrew, fourth in line to the throne, was behind the move.
“The Queen loves music and was impressed by how small and handy the iPod is,” a royal insider told the paper. “Obviously it is quite complicated to download songs, but I’m sure one of the courtiers will do it for her. Prince Andrew will probably also help out because he’s a real dab hand with gadgets.”
Morgan Stanley analyst Rebecca Runkle said today that Apple’s pact with Wal-Mart may be broader than some realize.
“While we don’t believe Apple iPod availability at Wal-Mart is completely new news, we do think the partnership is broader than people think, in transition and set to expand in the near-term,” Runkle said in a research note to clients.
Runkle said Apple and the retail giant have expanded their initial test rollout in the last few months. Confirming the report, iLounge readers in Florida, Indiana, Texas and elsewhere have noted in recent weeks that they’ve seen various iPod models at their local Wal-Mart stores. Select Wal-Mart locations are carrying the 20GB iPod, the iPod mini, and the iPod shuffle, along with HP-branded versions.
Runkle estimates that sales of iPods at Wal-Mart locations could boost sales by 100,000 units and add $20 million in revenue each quarter. “We view the growing Wal-Mart relationship as a positive—a way to expand the brand to the mainstream and additive to the bottom-line,” she said.
Microsoft CEO Steve Ballmer has tapped Senior Vice President Robbie Bach to revamp the company’s digital music offerings in an effort to keep up with Apple. Bach, who is also the head of Microsoft’s Xbox unit, has been called a “rising star” in the tech industry for his work on the video game console.
“Bach is expected to be given the authority to push for a range of changes, such as setting up a team focused solely on digital music, reorganizing product groups, or acquiring companies,” The Wall Street Journal reported Tuesday. “One immediate mission for him will be to make Microsoft’s new Xbox a hub for handling digital music.”
Ballmer reportedly assigned Bach to the new music role after an executive retreat in which his team privately showed the new Xbox 360 and marketing plans. “Later, executives talked about how they might employ lessons learned from Mr. Bach’s group,” the paper notes. “The retreat included a brief analysis of rival Apple’s music strategy.”
Microsoft insiders say that Bach plans to work more closely with certain media player makers to aid them in building better devices. “It would be an extension of the PlaysForSure branding program Microsoft started last year that subjects partners’ music players and services to a battery of tests to assure they will work smoothly with music services,” the paper reports.
Thought Out’s Mike Talmadge provided iLounge with an update regarding the ongoing trademark dispute with Apple over the use of his company’s iPed name.
“We understand Apple’s request in protecting their trademark of the ‘iPod’ name, but we feel we are being singled out,” Talmadge said. “We pointed out to Apple that many other companies use the iPod/Pod name and variations of it in their products such as i_od or Pod this or that. We have been told by Apple as excepted, (in so many words) that this is not of your concern, and that Apple is, has, will be addressing them too.”
“We have been making every effort to come to terms with Apple in regards to the iPed name with out any major legal battle,” Talmadge said. “Apple and Thought Out plan to meet in the near future to discuss further actions for our iPed name.”
Helmes Innovations has announced the release of iPurseona, new content that turns your iPod into a “digital purse accessory” using the iPod Notes feature. iPurseona includes: Beauty Recipes & Homemade Remedies; Body Care Tips & Tricks; Hair Care Tips & Tricks; Skin Care Tips & Tricks; Make-Up Tips & Tricks; Fragrance Tips & Tricks; Pick-Up Lines; and How-To’s. The $9 shareware works with both Macs and PCs.
Wrigley’s Extra has teamed up with Apple to launch a major iPod promotion in the UK and Republic of Ireland. The company will give away 10,000 iPods (5,000 20GB iPods and 5,000 iPod shuffles) and over 90,000 other prizes, including front row concert tickets, online album vouchers and £5 iTunes vouchers. The promotion will run across the entire Extra chewing gum and Extra mints product line, and winners have until December 31, 2005 to claim their prizes.