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Analysts expect video iPod at special event next week

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By LC Angell

Contributing Editor
Published: Wednesday, October 5, 2005
News Categories: iPod

Like many others, two Wall Street analysts are expecting Apple to introduce the much-rumored video iPod at next week’s “One more thing” special event in San Jose, California.

“We would expect a video iPod to have a material ‘wow’ factor, but we believe that it would need to be priced reasonably (less than $400) and be accompanied by a significant library of iTunes accessible video content to not be anything more than a niche product in the near term,” Piper Jaffray senior analyst Gene Munster said in a research report obtained by iLounge. “That said, a first step into portable video would open the door for future product innovations as the company continues to branch out into more of central player in digital and mobile convergence.”

Munster said a smaller form factor high capacity (greater than 10GB) iPod could also be shown at the event, but he does not expect a new Mac computer (other than possible incremental changes to speed and memory), nor does he believe the company will introduce an Apple-branded mobile phone.

American Technology Research analyst Shaw Wu also believes a video iPod will be unveiled next week, and is also looking for speed-bumped Macs. “After spending the past two years studying this market and negotiating with content partners, it appears Apple is ready to go to market with a 1st generation video-capable iPod,” Wu said. “Competitors Samsung, Creative Technology, iRiver, and Archos have shipped portable video devices for some time albeit without much success. We think a key area to watch is the price points Apple will set for these new devices. If Apple can charge under $400 and preferably $299, we believe it will sell well. At higher price points, we believe it may be difficult to drive high volume.”

Wu said he expects that the first set of video content available from the iTunes store will be music videos and video podcasts. “At this point, we do not anticipate full-length feature movies but would not be surprised to see some test movies in the future as the studios are still figuring out their future business model vs. today’s movie theater and then DVD approach,” he said. “We are also picking up indications that Apple could announce an optional external ‘video out’ module that attaches to an iPod video meaning one can output the video to a TV or external screen.”

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Comments

1

I don’t think Apple would release a video iPod just yet.  They just released the iPod nano.  I don’t think they would want to jeopardize the nano sales with a video iPod.  My guess is that there will just be some Powerbook/PowerMac updates.

Posted by Daniel Gilmour on October 5, 2005 at 1:03 PM (PDT)

2

Just because they put the nano out not that long ago, I’m going to believe there won’t be a video iPod, just yet. But I don’t doubt there will be some music related items introduced at this event.

But Apple has a way of surprising us all, so I’m probably wrong about the V iPod.

Posted by jonyem in Port Angeles, Washington on October 5, 2005 at 1:46 PM (PDT)

3

The nano is unrelated to any larger iPods. People seem to have a hard time figuring this one out, so let me put it this way… People are buying it (just like the Mini) because of its size, not its storage space or features. Apple understands that, so they know any effect their next full size iPod (whether it is video or not) will have on the nano, will be minimal. Different buyers are looking for different things. Some of you may be indecisive or always want the hottest gadget. But you’re not the majority. To each their own.

And I believe there is a strong possibility of a video iPod being released…

Posted by Domo on October 5, 2005 at 1:57 PM (PDT)

4

I was going to say the same thing as Domo…the nano is a different market.  People looking for a video iPod (vidPod?) aren’t in the market for a 2 or 4 GB flash player.

I want ANY iTunes-capable player that has 80GB in it.  Video or no video, I don’t care.  Give me iTunes, 80GB and good sound quality, and I’ll mortgage my house to pay for it if I have to!  smile

Posted by stark23x on October 5, 2005 at 3:22 PM (PDT)

5

We needed a bunch of analysts to tell us the above???

Bring me something solid…the people here are just as good if not better at speculating than the analysts.

Posted by Talking Madness in Los Angeles on October 5, 2005 at 6:42 PM (PDT)

6

i think it needs to be something other than just speed bump macs for there to be a whole event thrown just for this. especially since steve will be giving the address. i have no idea what’s coming, but i hope its new ipods. i really want a nano but i want to see what happens to the full size line before i retire my thrashed mini.

Posted by snuggles on October 5, 2005 at 7:51 PM (PDT)

7

Just like others mentioned, the iPod Nanon sales have nothing to do with the larger iPods.

You must look at this from an economical point of view. iPod Nano (2Gb or 4Gb) is not a substitute item for the iPod (20Gb or 30Gb or 60Gb).

If a person wishes to buy a small, low memory MP3 player, they would look at the Mini’s, Nano’s and other small MP3 players. But they would not consider the iPod 20Gb+ because that is now what they are looking for.

It would be great to see a video playing iPod released there, if it were released i wouldn’t mind getting one myself (if it has video out)

Posted by Mlevit on October 6, 2005 at 5:32 AM (PDT)

8

FYI, http://www.Cinematology.com is launching soon with DRM-Free, H.264/AVC MP4 video downloads.  Should work great on the upcoming video iPod!

Posted by AVCFan on October 6, 2005 at 9:57 AM (PDT)

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