Apple creates new iPod division | iLounge News


Apple creates new iPod division

Apple has created a new division within the company to sell and promote the iPod. Jon Rubinstein, who has led Apple’s hardware engineering efforts, will run the new division. Timothy Cook, head of the company’s worldwide sales and operations, will now lead a newly organized Macintosh division. The moves were announced today in a company-wide internal email sent by Apple CEO Steve Jobs. “This organizational refinement will focus our talent and resources even more precisely on our industry-leading Macintosh computers and the wildly successful iPod,” an Apple spokesman told Reuters.

Related Stories



Kind of glad, now Apple can concentrate on what they’re supposed to be concentrating on: computers.

Posted by narco on May 20, 2004 at 12:56 AM (CDT)


The rest of apple can concentrate on computers and the ipod division can totally focus on the ipod, win win as far as I can see,

Posted by scottder on May 20, 2004 at 4:58 AM (CDT)


This may also attract more Windows users like me.  They won’t see the iPod as attached to the Macintosh name.

Possible first step towards spinning the iPod and iTunes products into their own company.  But, maybe not.

Posted by jfk99 on May 20, 2004 at 7:25 AM (CDT)


Pay attention to this.  This is the setup for a spin off if things ever start to look sour of the iPod.

Posted by jwc110869 on May 20, 2004 at 8:00 AM (CDT)


Yep, this is the set up to spin off the iPod segment.  Financially, it makes huge sense.  iPod, iTunes, the Mini are all near the top of the market in terms of potential valuation.  Apple could make a killing spinning this off.  Maybe Sony, or BMI or some other recording industry heavy steps in with gobs of cash, buy it, and then runs it into the ground.

Are we all feeling secure about the DRM rights that may get renegitiated years down the road? 

Remember all those songs you THOUGHT you bought?  Well, guess what retroactively - your toast.

Posted by Obadiah on May 20, 2004 at 10:06 AM (CDT)


our industry-leading Macintosh computers

Industry leading Macintosh computers?


That’s hilarious. Macintosh’s are good for only one thing. Cannon fodder.

Posted by Dr_Cogent on May 20, 2004 at 10:29 AM (CDT)


I don’t see it as such a great move… Apple’s computer segment doesn’t have nearly the strength of sales that the iPod segment enjoys. While iTunes continues to drip into the PC market, iTunes on the mac has long been a beautiful marriage of software, computer, and peripheral. Personally, I would attempt to market the integration Apple products into a digital lifestyle choice…

Posted by Big on May 20, 2004 at 11:21 AM (CDT)


Macs are niche and never will be anything but niche unless Apple has an open architecture. Anyone can build a PC that runs Windows/Linux/Whatever. Apple on the other hand thinks they have the best tech, over charge the living hell for it - and guess what it got them - niche. 5% of the market. That’s just stupid. The should make OS X run on x86 procs. They would have a far larger market as a result. But no, they are too stupid to do that.

Posted by Dr_Cogent on May 20, 2004 at 12:33 PM (CDT)


They’re establishing a separate DIVISION, not spinning it off into another legal entity, a la Filemaker.

This move is more like the move they made years back with QuickTime.  Smart move, though, it will be transparent to all of us.

Posted by C'mon people, READ! on May 20, 2004 at 12:47 PM (CDT)


The key is that it establishes a completely different marketing division, similar to divisions created by Sony in the marketing of electronic goods such as the VAIO and the PlayStation. In fact, I recently read an interesting article about how the electronics giant has separately introduced two “iPod killers” by these two divisions which seem to compete more directly with one another. Apple is no Sony, but it can easily suffer similar marketing and product development snafus. And, at the end of the day, the iPod is currently little more than a snappy little peripheral.

Posted by Big on May 20, 2004 at 1:43 PM (CDT)


It wasn’t necessarily the high cost that reduced the Macintosh market share. Rather, lack of applications, which reduced the justification for buying the more expensive Macintosh.

This is what drove me to the PC for home use.  Games generally come out for wintel first, and then months/years later on the Mac, if at all.

Posted by jfk99 on May 20, 2004 at 1:57 PM (CDT)


I kind of thought this might be some sort of legal wrangling for the upcoming Apple Computer versus Apple Records law suite.  If the music division isn’t attached to Apple, no suite, right?  Or, if to settle, you agree to spin off the music part to Ipod, INC., it is already set to go.

Maybe I’m just paranoid, but Apple burned me bad with the Newton!  Still, a loyal user since 1986.

Posted by Mustang Paul on May 20, 2004 at 3:33 PM (CDT)


ahhh, mustang paul brings up a good point, the Apple vs. Apple suite. Makes sense to me.

Posted by jr on May 20, 2004 at 3:52 PM (CDT)


This was definitely a smart business decision.

Go Apple!  Go AppleSauce! [iPod HQ]

Posted by AMG on May 20, 2004 at 4:04 PM (CDT)


Apple makes what now?  Computers?

Posted by MeshKent on May 20, 2004 at 7:39 PM (CDT)


I wonder what will happen when (inevitably) the iPod “division” outperforms the sum of the rest of the company?

Posted by Market Maven on May 20, 2004 at 10:07 PM (CDT)


This may also attract more Windows users like me. They won’t see the iPod as attached to the Macintosh name

Huh?  Seriously?  Did you read the announcement?  Apple didn’t sell the iPod.  They just reorganized internally.  If that makes you feel better, so be it, but at this point nothing in respect to the consumer has changed.

Posted by on May 21, 2004 at 7:48 AM (CDT)


Market Maven - It already is. :)

Posted by AMG on May 21, 2004 at 9:07 AM (CDT)

Subscribe to iLounge Weekly

Sign up for the iLounge Weekly Newsletter

iLounge is an independent resource for all things iPod, iPhone, iPad, and beyond.
iPod, iPhone, iPad, iTunes, Apple TV, Mac, and the Apple logo are trademarks of Apple Inc.
iLounge is © 2001 - 2018 iLounge, Inc. All Rights Reserved. Terms of Use | Privacy Policy