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iPod buzz hiding problems for Apple

MacNN reports that “MONEY Magazine’s article titled “Why iPod can’t save Apple” says the buzz on the digital music player and “swank” storefronts are masking an ebbing bottom line, noting reduced CPU sales (resulting a shrinking marketshare), decreased profits (in part due to the lower-margin iPod and little-to-no profit at the iTunes Music Store), failure of the iPod to drive CPU sales, failure of the retail stores to increase marketshare, hidden retail store costs, no operational income, and little value in the stock. [subscription required to view entire article; highlights posted below]”

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Comments

1

Save Apple from what?

They just paid off the last of their debt and have 6 BILLION dollars in the bank - cash.

What a joke article.

Posted by Gary on March 18, 2004 at 10:26 AM (CST)

2

Yeah!  We’ve been hearing this “Apple is dying” crap for how long now?

Posted by The Raven in USA on March 18, 2004 at 10:41 AM (CST)

3

You are joke numnut.

Apple sux. Microsoft rules.

Posted by Gary_is_an-idiot on March 18, 2004 at 10:41 AM (CST)

4

Yeah… and, again…. total crap news.

Posted by Gary_speaks_the_truth on March 18, 2004 at 10:46 AM (CST)

5

So, if we are to believe this then all the bad press for MS should be spelling it’s doom. Whatever….80% of the people I know who are buying or bought new computer bought mac.

Posted by Aaron Miller on March 18, 2004 at 10:56 AM (CST)

6

Apple has been dying for over a decade. I used to be worried that one day I wouldn’t be able to buy a Mac, but I’m not worried. Apple doesn’t need saving.

Posted by lbarkett on March 18, 2004 at 10:58 AM (CST)

7

Next step you’ll see Apple launch macOS compatible with windows programs and x86. Think of the money involved with the first “viable” alternative to a windows OS. Huge sales of iPods (mostly by windows users I’d imagine) are just going to fuel it even more.

I know I’d switch to jaguar or something if it ran on my x86 & was compatible with the hardware/software I use now.

Posted by Widds on March 18, 2004 at 11:01 AM (CST)

8

Widds, that will never happen.

Apple is a hardware company, not a software company. They simply make software to accompany their hardware and help it sell. It has always been this way and always will. They will never make OS X for x86 simply because it would suck just like x86 already does. If you cannot see why this is then you obviously have not done research on the topic and need to spend some time doing so before ever thinking they could make money that way.

Posted by Josh on March 18, 2004 at 11:12 AM (CST)

9

Everything they say about the bottom line is true - Apple needs to sell many, many, many more iPods to make back the same money it can get from a sale of a single high-end XServe or G5. That is where the real money is.

Posted by bottom line on March 18, 2004 at 11:27 AM (CST)

10

$6 billion in the bank? Doing what? What kind of a return are they earning on it? Could it be that they are awash in liquidity? That is, they have so much much cash but no where to park it? It’s called underperforming, whether it’s their fault or not. They generate cashflow but are not able to pump it back into their own line of business where they could earn a wider margin than investing it in the market these days. I’m not saying this is bad, only that it may indicate that Apple is now a much more modestly profitable company than before. It’s funny how a bunch of nose-picking geeks who like to wear their Ipods like they’re neckties are suddenly financial experts.


>>>>Save Apple from what?

They just paid off the last of their debt and have 6 BILLION dollars in the bank - cash.

What a joke article.

By Gary on Mar 18, 04 9:26 am

Posted by Margk on March 18, 2004 at 12:45 PM (CST)

11

Analysts are like horses with blinders on—they can see exactly what’s in front of them, but nothing else.  Apple is leading the way on many innovations in the digital lifestyle space—so basing an “apple is dying” article on sales of G5’s is a joke.  Can the author predict Apple’s next iPod?  Apple’s next version of the iMac?  Apple’s integrated home media player?  The new version of iTunes that’s being rolled out?  There are so many innovations in the pipeline, it’s a safe bet to say many may be billion dollar payoffs like the iPod was / is/

Posted by Bruce on March 18, 2004 at 1:43 PM (CST)

12

Unfortunatly the price on macs hasn’t really dropped at all, while the price of x86 PCs have fallen to staggeringly low levels compared to 10 years ago. There will be a time when even “die-hard” apple fans will realize that they’re paying nearly 2x as much, for basically the same performance. Heck, even my schools which were 100% mac for as long as I can remember are slowly phasing in Dells, Gateways, Compaqs, etc that perform just as good, and cost half as much. The only market I don’t see x86 PCs stealing much from macs is the digital photography/video area, where the hardware + software is made by one company, and is arguably the most powerful/easiest to use combination.

Could you imagine the extra revenue generated by moving the macOS to x86? You’ll have 2 types of people..

1) People who will switch just because it’s not windows, because it’s an actual “viable” alternative.

2) People who will switch because macOS is actually better than windows, it’s more stable, it’s graphically more appealing (well that is more of a personal opinion) and it has more power to it.

With the huge success of iPods over the past couple of years, with a majority of the buyers running windows, it would only make sense for them to release a x86 compatible version of macOS.

Apple isn’t dying, but it is far from it’s potential.

Posted by Widds on March 18, 2004 at 2:03 PM (CST)

13

In a recent interview, Jobs spoke about Apple after he was ousted. At that time, they had a pretty strong grip on the PC (read: personal computer) market, and they were enormously profitable. For a few years, they had a very high profit margin. And they were also headed for a crash, because there was no innovation. Bean-counters like *Money* or Margk seem to think accountants have the final say on the tech sector. Jobs’ point was that unless you have designers who can ignore the bottom line to a certain extent, you will not move forward. What Apple has at this point is an OS superiority not seen since the days of Windows ‘95.

Posted by Questioner on March 18, 2004 at 2:10 PM (CST)

14

Ipod is the only good thing about Apple. I have no idea why anybody would waste their time (and of course their money) buying a Mac. If you don’t like windows than try linux,, but stay the hell away from Apple made computers. Overpriced times 3!!!

Posted by Pigpen65 on March 18, 2004 at 2:40 PM (CST)

15

Way too much fear-mongering goes on in these “analysts” articles.

I have never owned an Apple product up until six months ago.  I bought an iPod.  I loved it so much that I just bought an iMac two weeks ago.  Seems to me that Apple’s plan is working quite well.

Posted by msherman on March 18, 2004 at 2:50 PM (CST)

16

Pigpen65: Have you ever *used* a new mac?  You say the iPod is great, but why would you buy an iPod when you can buy any other harddrive-based MP3 player for hundreds less?  You bought it because it is superior to all the other products, right?  It’s not all about cost!  Some people will pay more for a better product, duh.

Why buy a Porsche 911 for $65K when you can buy a Ford Escort for $9K?  It’s not all about price.  And that’s why the iPod is so successful.  It’s because people are starting to realize that good design is actually worth paying for.

Posted by msherman on March 18, 2004 at 2:53 PM (CST)

17

The price differential, although it exists, is overblown. I think the real issue is a lack of choice. For example, the iMac is expensive, to be sure, but flat screen LCDs are $400 dollars. Take that off, and the computer itself is not that expensive.

I was looking at a discount PC mag, and I was shocked by the prices. In some cases, PCs were $600. There is nothing you can buy from Apple at that price. But then I noticed that these computers came with small hard drives and a small amount of memory, and were unusable in their current states. Add what you need, and what do you get? A computer comparable in both performance AND price to an eMac.

But most of all, hardware is only half the equation. I look at the most souped-up PC, and still get a feeling of fatigue, because no matter how powerful the hardware, one is still forced to use Windows. And Windows blows. Let’s face it. Why else would Widds say that he would switch to Jaguar or “something” if he could?

Posted by Questioner on March 18, 2004 at 3:17 PM (CST)

18

” was looking at a discount PC mag, and I was shocked by the prices. In some cases, PCs were $600.”

Walmart has PCs starting at $200.

Walmart has flat panels for $200.

Add in an 80GB hard disk and 512MB of RAM and we’re talking $500 for a flat panel system.

How much is an iMac again?

Posted by Walmart on March 18, 2004 at 3:37 PM (CST)

19

And of course, these Walmart PCs either come with no Windows, or with Lindows or another integrated, supported Linux.

Posted by Walmart2 on March 18, 2004 at 3:38 PM (CST)

20

The guys who run Walmart should be put in prison. And anyone who shops there has no conscience. Cheap prices are bought by forcing the employees to work unpaid overtime and stealing money from civic coffers.

I don’t want a f-ing Walmart computer. For your info., a 15’’ LCD from Dell runs $369. Anything from Walmart has to be a POS. And anyone who would take the name is also one.

Posted by Questioner on March 18, 2004 at 3:54 PM (CST)

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