 |
More of my sitesWinInfo Daily News
|
About this siteFor six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul Saturday, October 30, 2004Stevenote reviewI've finally had a chance to watch all of the Apple Special Event from last week, where Steve Jobs introduced the new iPod Photo and iPod U2 Special Edition. In many ways, it was a typical Stevenote, starting with a long-winded retrospective of what Apple has done recently--primarily the iMac G5, which Jobs said was the best reviewed Mac the company had ever released. But Steve actually provided a lot of numbers and other data, which is unusual. Let's look at what Steve discussed.Retail stores Apple has 93 retail stores, which serviced over 24 million visitors hosted in the last fiscal year. Steve noted that the stores were responsible for $1.2 billion in revenue, which is, of course, not the important number. He never mentioned actual earnings. Steve also introduced the Mini Apple store, which is, incongruously enough, imitating the success of the Mini automobile. "It's amazing because it was designed to be a small car right from the start," he said. On that note, Apple's Mini stores are designed to be cool because they're small. There are 6 open now, and each is split evenly between Macs and iPods, which I think it's a great idea.  Apple's retail stores have been a tremendous success no matter how you slice it, especially when you realize that competitor Gateway closed all of its retail stores during the same time period. While it's unclear how well they're doing financially, the stores are an excellent way for Apple to reach people. I've always thought that Apple's products benefit from looking and touching--unlike, say, Dell's more commodity-type products, which are only sold through mail/Web order. And the Apple stores are accomplishing that. Like many people, I'm drawn to Apple stores like a moth to a flame. I really enjoy going there, though I think they're a bit too sterile. iTunes Jobs noted that Apple's iTunes Music Store has sold 150 million tracks so far, and has 70 percent market share according to SoundScan. Contrary to reports about online music buying slowing, Jobs revealed some steady increases over the May to October timeframe, when the company went from 10.8 million songs sold in May to an anticipated 17.7 million in October, with a steady increase month-over-month. Overall, sales grew 64 percent. On the day of the announcement, there were five iTunes Music Stores available (US and four other countries) and Jobs announced that its EU store would now cover 9 more countries, for a total of 14. Oh, and Canada will make 15. Apple has distributed over 85 million copies of iTunes so far, which is amazing. I'm guessing that most of them (like most song sales) have been to Windows users. Steve announced iTunes 4.7, which fixes some bugs and adds some new features. iPod "The iPod has become a cultural phenomenon," Jobs said, and I suppose that's true, especially in big cities, where white earbud-wearing music lovers are common. Though Apple didn't invent this market, it did perfect it, and I think the company deserves all the credit for that. Curiously, Jobs referred to the iPod Mini as "an unabashed hit" but then failed to specify any sales numbers yet again. Though it was first announced in January, and supposedly widely available in April, the Mini, in fact, has only recently been available in quantity. That's because Apple's parts suppliers have been slow to deliver the hard drives Apple needed. Because of this, you could only start finding Minis on store shelves in the US since September, and they're readily available now. I'm not sure how this qualifies as a hit, but again, some numbers would help. Last quarter, Apple announced that it sold 2 million iPods for the quarter, a record number, though most of those, of course, where of the normal white iPod variety. The company has sold almost 6 million since the first units went on sale in late 2001, and sales are rising. Again, Apple deserves it: The iPod is good stuff, an elegantly designed machine and, for many people, an affordable luxury.  According to NPD, the iPod enjoys a 63 percent market share when compared to all MP3 players (including flash-based players and hard drive-based players). And among hard drive-based players, the iPod commands a whopping 92 percent of the market. Here, Jobs decided to take an arrogant little dig, noting that while many of its competitors say that Apple isn't providing any choice--which is accurate, since the company locks the iPod to iTunes--"They just don't like the choice that customers are making." The expected applause never came after that comment, which I found odd. Jobs then announced a "revolutionary new product for your iPod," iPod socks. Queue confused laughter and then applause. He's joking, right? Nope. Because companies that make iPod cases make more money on those accessories than Apple makes on the iPod (he said), Apple thought that it would offer something too. They come in six colors and will cost $29 for a set in mid-November. Yes, seriously.  What's next for the iPod? Jobs noted that everyone always asks what Apple will do next with the iPod. "The iPod is all about music," he said, "and the iPod will always be a music device." It's kind of curious, in retrospect, that Apple didn't simply introduce a color version of the iPod that added album art functionality and so forth for a small premium. That would have allowed the company to build on that later for an iPod Photo product. Obviously, that's not what happened. In standard Steve form, Jobs took a dig at his competitors, who, in this case, are actually leading the way with portable media devices that do more than just playback music. (Arguably, some of the portable audio player competition is also ahead of the iPod, when you consider that non-Apple devices sport color screens, compatibility with multiple online stores and subscription services, offer more features like FM radios and audio recording, and come in with lower price points, more storage, and better battery life to boot). Jobs continues to both downplay portable video and belittle those who want it, which is odd. He says Portable Media Centers--as the representative device in this category--are too big, too heavy, and suffer from a lack of content. That last bit is laughable. Unlike the Mac, which doesn't exactly have a lot of video content available for it, PC users can record TV shows and subscribe to online services like CinemaNow and MovieLink to get video content. The problem here, really, is Apple: It just doesn't have the infrastructure set up to get video going for its customers. So video ... well, it's just not there yet, according to Jobs. Naturally, he got applause for this. So while videos are wrong, Jobs says, photos are right (arguably, what's right is that you can take any digital content with you, but whatever: Apple only has a photo solution right now, so they'll run with that). The case for digital photos is obvious: "Everyone" has a digital camera now, he said, and libraries of digital photos. There are even digital cameras in cell phones. True enough, though he neatly skipped over the fact that cell phones, with enough storage and a media player, can also replace iPods for most people. But I digress. Photos are a no-brainer. Everyone has the content. Unlike music and video, there are no licensing issues. All very true. iPod Photo To take advantage of the music + photo dealie that Jobs believes is the next big thing, Apple introduced the iPod Photo, which bears precious little resemblance to the mock-ups dedicated Apple fans made in the days leading up to the event. Instead of a sleek new design with a large screen, the iPod Photo is ... an iPod. With a color screen. A very small color screen. Oh, and it carries a $100 premium over the non-color version, or a $200 premium if you opt for the larger 60 GB drive. That's right, folks: You can now spent $600 on an iPod if you want to. Yikes. So let's get back to the basics. The color screen is gorgeous. For normal iPod actions, like navigating around the menus and interacting with the various small utilities Apple builds in, color predictably adds a lot. Calendar is suddenly useful. The whole thing is just beautiful. When playing back music, you can display album art, which was of course pioneered by other companies long ago, but Apple does a great job, as expected. For the photo functionality, Apple's typical eye for elegance is at work, and the interface is well-done. The screen, of course, is too small, and the iPod is too underpowered to do anything impressive with photo transitions. However, Apple takes another page from the Portable Media Center playbook by adding TV output, which is nice or, arguably, necessary. That gives you a way to take photos on the go and share them with others on a decent-sized screen. iPod Photo ships with the necessary cables to make it work, thank goodness. It also includes a special dock with an S-video port for better video quality. It looks like a nice photo slideshow solution, though again it's pretty expensive for what it does.  In short, the iPod is typical Apple: Elegant, beautifully designed, and too expensive. If you're in the market for an iPod anyway (and these days, who isn't?), I could see this being an option for many people. But my God, the price: $499 for a 40 GB version and $599 for 60 GB. It's also worth noting that the experience of syncing photos is much nicer (for now) on the Mac than it is on Windows. It makes me wonder if an iPhoto port for Windows is in the works. My guess? Not a chance. iPod U2 Special Edition Nobody does the celebrity thing better than Apple. At the launch of Windows XP Media Center Edition 2005 earlier this month, the ever-stale Microsoft was only able to summon the questionable talents of Queen Latifa (again, yes, seriously). This is an area where Apple--no, Jobs--just kills Microsoft. Say what you will about the company, but it attracts an amazing array of actors, musicians, and other creative types. And building on the success of its U2-oriented "Vertigo" ads, Apple launched a bizarre new iPod, dubbed the iPod U2 Special Edition, which is being endorsed by the band. One thing I have to say I'm really impressed by is a bit of information that came out during a CNBC interview with Steve Jobs and Bono and The Edge of U2 after the event: U2 accepted no money for its endorsement of this iPod, and will instead make a small amount for each unit sold. It will also make money on digital sales of its music on iTunes, of course. In this way, the band effectively turns back charges that it has "sold out" to the corporate world by aligning with a company like Apple. I have to agree, and I had indeed accused them of selling out when I first heard about this deal. In any event, Jobs brought out U2's Bono and The Edge for the launch of the iPod U2 Special Edition, which had the desired effect on the audience. But before that happened, he discussed the thinking behind the new iPod and how Apple was trying to think "beyond the album." There have been boxed sets before, of course, but they have limitations. So Apple created something it calls the world's first Digital Boxed Set, dubbed "The Complete U2." It includes over 400 tracks, including every album the band has ever released and over 25 rare and unreleased tracks (or about 30 CDs worth of music). The cost? $149. It's coming out November 23, the day that U2's next album ships. You know what's hilarious about this product? You have to download it. 400 tracks. One at a time. Why is that funny? Because Jobs says that video isn't happening today, and yet you could download several movies from CinemaNow in the time it takes to download 400 songs. I guess "ready" or "not ready" depends on your point of view. "Now, broadband IS required," Jobs quipped, to much laughter. Yeah, it's required for video too, Steve. It's also hilarious (in a non-funny way, if that's possible) that Apple isn't preloading this music on any iPods. How could you possibly release a U2 iPod and not include any of the band's music on it? Well, pretty easily as it turns out. The iPod U2 Special Edition does just that. It's basically just a 20 GB iPod that's painted black, with a red scroll wheel. It doesn't include black headphones or a dock of any kind, and you can't even get a black dock as an accessory. "This is gorgeous," Jobs said. "It's really something." I must have been looking at something else. Because from where I sit, the U2 iPod is a mess: It's ugly, and for a $50 premium over a normal iPod, you get ... a poster (yes, seriously). And a $50 off coupon for "The Complete U2." Jobs said it best: "Now imagine one of these things loaded up with every U2 song ever recorded." Sadly, you'll have to imagine it or make it happen yourself.  $349. Wow. Wow. Now, I love U2. I've bought all of their CDs, even the mid-90's electronica crap. But watching them shill a corporate product was a little painful for me. I appreciate--and even believe--the love and respect they have for Apple, though I think it's a bit misplaced. But as I said before, this is legitimate celebrity here, and they're honestly into this stuff. You could never say that for any of the pseudo-celebrities Microsoft has carted out over the years. What wasn't announced? As with most Apple events, the company didn't deliver on a number of expected announcements. Key among these missing announcements: - AAC Plus, an improved version of the proprietary AAC music format. - A flash-based iPod with 512 MB or 1 GB of RAM and a $149 price point. - A 5 GB iPod Mini to tackle the current generation of Mini competitors. - A price reductions for the iPod Mini. $249 is still too expensive for 4 GB. - An iPod Photo with a large color screen. - An iPod U2 Special Edition with a collection of U2 music included. - Any Mac news at all. Conclusions When it comes to speeches before a friendly crowd of pseudo-journalists, no one delivers like Steve Jobs. But let's be fair: Most of the announcements made during this event were marginally interesting, even if I don't personally believe they're relevant or revolutionary. With digital music, Apple now finds itself in a position with which Microsoft is very familiar. The company now dominates digital music, and only has to evolve its products slowly to keep the momentum going. With the iPod Photo and iPod U2 Special Edition, that evolution has never been slower. They're not horrible. But they're not trend-setting like many Apple products. And that, ultimately, is why I feel disappointed about this whole thing. [ Posted at 6:03 PM | Permalink ]
|
|
Nexus Home | Nexus Archives | Email Paul
|