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iPod buzz hiding problems for Apple

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By Dennis Lloyd

Publisher, iLounge
Published: Thursday, March 18, 2004
News Categories: iPod

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

21

msherman, i agree with your comments about the ipod. I paid more money for this HD based player because of its superior design. The difference of course is that an ipod is portable. It has to fit in my pocket, be operated when i only have one hand free, and be easily taken into the car with me. That’s what i wanted, and that’s what the ipod has provided me. If you’re talking about Laptops than i can’t comment on that because i have never used an apple notebook. I have used the G5 as well as an imac though, and have found absolutely nothing that justifies their inflated prices. You can get an Intel based PC from Dell( w/ a flat panel)  for $500 that will outperform the imac handsdown. If you want to pay an extra $1,000 + for an Apple because you like the design that’s your business. I was just saying that i don’t understand it.

Posted by Pigpen65 on March 18, 2004 at 2:11 PM (PDT)

22

Eh, sorry about that last comment. I saw the little statement about “abusive comments” at the bottom of the page.

Posted by Questioner on March 18, 2004 at 2:13 PM (PDT)

23

I think a distinction has to be made between a “flat-panel” and an LCD panel. The iMac comes with an LCD, and again, a 15” LCD from Dell costs $369.

Posted by Questioner on March 18, 2004 at 2:16 PM (PDT)

24

Well, Walmart, you COULD buy a PC from your local Wal-Mart, but then you’d be supporting a wretched company.

Your call.

fs

Posted by filmsmith on March 18, 2004 at 2:17 PM (PDT)

25

Good god! I am sooooooo tired of hearing about Apple’s “demise”. This has been going on since how long now? As long as there is graphic desiign, there will always be Apple computers. I have been in the print industry for over a decade, and have used PCs and Macs for design, and I can tell you, once M$ decides to put some kind of coherent consistensy in it’s OS and the way it handles files, there will ALWAYS be macs in publishiing and graphic design.

Posted by ah ME mon on March 18, 2004 at 2:31 PM (PDT)

26

Walmart LCDs - starting at $200.

Posted by Walmart3 on March 18, 2004 at 2:43 PM (PDT)

27

man…u guys are argueing about apple and windows? first and foremost apple hardware (computer) is better than pc. apple computer look very very very nice ( powerbook look soooo sweet). apple is way way way over price. i hate apple for what it is. stop bashing about pc. Job can have his little 1% of the market. is this a ipod site or a apple’s FAN BOY SITE?!?!?! Job is a bitter old fool and all u apple’s fan boy shut up. if its not ipod related shut UP!!!!!!!

Posted by mini ipod suck on March 18, 2004 at 2:47 PM (PDT)

28

1%?  Supporting documents, please.

fs

Posted by filmsmith on March 18, 2004 at 2:51 PM (PDT)

29

I have an iPod, but I would never consider buying a mac PC.  I have to use them at university and they drive me mad.  When I bought my iPod it annoyed me out of the box - it wanted to mirror everything I had in iTunes due to its ‘automatic synchronisation’ carp.  Seriously, how hard is it to drag and drop? 

But this ‘leave it all up to the computer to do it automatically’ approach seems to be the Apple ethos.  I like to be in control.

Also, I hardly think Apple should be considered a hardware company - a design company maybe - because they do not manufacture any of the hardware in any of their systems as far as I am aware.

Posted by Fred Nerk on March 18, 2004 at 3:03 PM (PDT)

30

As always, it seems that Apple is always on the brink of extinction. Yet, how many praises for it hardware products are abundant throughout the industry? Numerous!! The same question goes for Mac OS X - numerous!! The industry is geared more to what it views, not necessarily what is better. Even though Apple may be “small” in comparison to the others out there, it manages to stand out from the rest. Too much of the technology that Apple has invented whether its style, ease or use and operation finds its way into the regular PC world. “Apple is overpriced” is a familiar saying of people who can not understand the quality and strengths that Apple products give to the rest of the PC community. Consider this way of thinking to be called “denial”. Price is not the only issue that dictates what a consumer buys, it is also quality and reliability and Apple carries both in high regards. Granted Apple is not perfect but nothing ever is. Apple is both dual in its business functions, a hardware and software company and is strong in both. The industry will always find something wrong with anything that Apple delivers yet they will quickly turn around and marvel at every product that is introduced by Apple. Being experienced in both the PC and Apple environments, there is no question that Apple delivers the best product, hands down. There are many people who have crossed over to the Apple world without hesitation and without a look back to the PC world that they left behind. Since 1984, Apple has made a difference and change is never easy for people to accept. Time to face reality….Apple is the standard to beat.

Posted by ezflyer on March 18, 2004 at 3:03 PM (PDT)

31

I’m so tired of hearing about these stupid money section authors telling they’re forecast of Apples demise. This is a conspiracy to the support of brown nosing bill gates lovers who can’t ever dream to have the kind of innovation and design and cream puff creations of Apple. Ok, lets see, I’d give apple 1000 years to live if you base it only on educated analyses. Best Operating system that never crashes OSX Best digital music player ever created IPOD, best flat panel integrated desktop for home users IMAC Best and fastest computer on the planet G5, best retail stores by art boutique standards Apple retail…...Do these bastards realize that Apple Retail stores are churning huge porfits and record revenues and are “in the frieken black” But noooooooooo, the fat as@ windows conspirator didnt analyze all of this….Oh finally, graphic designer and musicians and printe media companies will always use Apple Macs, and the new standard for hi fi digital music is AAC, so everyone just go to He@# and dont tell us what YOU think Apple will make on theyre G5…... stupid idiots

Posted by tiger woods on March 18, 2004 at 3:10 PM (PDT)

32

1%? No! 2%!

http://www.fastcompany.com/magazine/78/jobs.html

Following the PC, Apple served up many of the features that computer users have since come to take for granted, including the graphical user interface, the mouse, the laser printer, and the color monitor. Yet Apple has been forced to watch the celebrations from out in the alley, its nose pressed longingly to the window as others feast: Today, more than a quarter-century after its founding, it commands just 2% of the $180 billion worldwide market for PCs.

If Apple is really the brains of the industry—if its products are so much better than Microsoft’s or Dell’s or IBM’s or Hewlett-Packard’s—then why is the company so damned small? (Consider that in the last 10 years alone, Apple has been issued 1,300 patents, almost one-and-a- half times as many as Dell and half as many as Microsoft—which earns 145 times as much money.)

That Apple has been frozen out time and again suggests that its problems go far beyond individual strategic missteps. Jobs may have unwittingly put his finger on what’s wrong during his keynote speech earlier that day in Paris. “Innovate,” he bellowed from the stage. “That’s what we do.” ... And yet it’s hard to look at Apple without wondering if innovation is really all it’s cracked up to be ... it turns out that not all innovation is equal. Not all of it is even good.

The father of the PC—and, remember, the industry’s number-one vendor in 1980—has since sunk to a lowly ninth, behind competitors Dell, Hewlett-Packard, and IBM, just for starters. Sadly, Apple is also behind such no-namers as Acer (seventh) and Legend (eighth). So much for innovation and creativity.

Posted by DumbSteveJobs on March 18, 2004 at 3:15 PM (PDT)

33

“The industry will always find something wrong with anything that Apple delivers yet they will quickly turn around and marvel at every product that is introduced by Apple.”

Pippin
Cube
Lisa
Apple III
Wiggy Drives
OS9
20th Anniversary Mac
Newton

Apple’s had some hits and some misses. People didn’t marvel at the above, they mostly laughed at them and Apple was generally quick to discontinue them.

Posted by Marvelling on March 18, 2004 at 3:23 PM (PDT)

34

How many more so called analysts do we have to listen to talking about Apple’s demise. Are these the same analysts that went all gaga over the dot-com(N) debacle. They seem to forget that whilst other companies cut back on R&D over the past 3 years Apple spent more and look what great products it produced during the past 2-3 years.  My only concern is the roll out of the stores, prime locations and at prime rents too, easy on the stores steve. Big cash hoard of money good let it sit there and earn a good rate of interest. Apple is a mature company and profit margins will fall over time.  It’s company that runs on innovation and long may it do so. I know you can buy a PC at walmart butlets be honest who would you actually tell that you bought it from walmart.

I was a windoze man up to about 3 years ago but with superior hardware and great software (freeware, shareware and commercial) I am sticking with Macs. and saving hard for a G4 ibook or a bottom end G5.

So to quote Oscar Wilde (I think) ‘reports of Apple’s demise have been greatly exaggerated’

Posted by glad1959 on March 18, 2004 at 3:27 PM (PDT)

35

Like I stated, Apple is not perfect - but why not state the “marvels”

MaC OS X
iMac
iPod
G5

shall I continue?

Posted by ezflyer on March 18, 2004 at 3:29 PM (PDT)

36

MaC OS X - BSD & MachOS. Thanks Next!

iMac - Okay this was a good idea… back in the 90s.

iPod - Thanks PortalPlayer!

G5 - Thanks IBM!

Posted by CreditDue on March 18, 2004 at 3:40 PM (PDT)

37

Marketshare, as a strict percentage, is misleading. In a typical office, you will find twelve drudge-boxes to the two in the design department. So what? I have split my time between SF and NYC, and in cafes, Powerbooks and iBooks greatly outnumber Windows laptops. The scientific community has come to appreciate the UNIX in OSX and Apple has quietly worked to stop the migration trend in music and desktop publishing. Key figures in the media have come to recognize the virtues of Macs, and everyone here has an iPod, right? In the financial sector, money commands respect. But as a user, what does it matter? If sh-t in a jar made a huge profit, it would command respect for some of these guys. Thank God that someone like Jobs exists. I am happy to use Apple products. Microsoft and Dell have a lot of capital, but they can’t produce anything better than Windows and the “DJ.” If you are so against Apple and are willing to see it fail, turn your iPod in for a DJ.

Posted by Questioner on March 18, 2004 at 3:50 PM (PDT)

38

Questioner,

If you buy a stand alone 15” LCD from Dell it will run about what you quoted, 300 - 320. However, Dell routinely runs a number of different promotions, and a free LCD has been (and currently is) included with their lower end dimension for $500. 15” LCD, more ram, bigger hard drive, more than $1000 less than a 15” imac.

Posted by Pigpen65 on March 18, 2004 at 3:50 PM (PDT)

39

Seems every one who posts here is either a troll, an idiot, or someone who thinks they know more than someone else (except me because I’m perfect). For fucks sake just get a life and quit arguing with a bunch of nerds you don’t even know on the net. I have a PowerBook, and an iPod, and I ####### love Apple, but I don’t wanna hear sad little geeks with nothing else to do argue about stuff they think they know about out. Why don’t you all go get girlfriends or something?

Posted by I_have_a_life on March 18, 2004 at 4:36 PM (PDT)

40

I configured a dell value system 2400 (upgraded to/with 256MB, 80GB HDD, low quality 15"LCD, combo CD-RW/DVD-ROM, firewire IEEE1394 and CD burning software) - to something near an 15” iMac which lists for $1299

It is $940-950, however has no video card (integrated video) which sucks. Add a video card, if you can, and it’s another $75-100. Regardless, Dell’s cheapest computer w/video card is going to run you over $1000. That’s not a drastic difference - considering the iMac is much more compact with no wires running everywhere and no huge case taking up all that space!

Posted by CheckYourFacts Pigpen65 on March 18, 2004 at 4:46 PM (PDT)

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