Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > Everything Else > Off-Topic

Off-Topic
Everything not about BMWs. Posts must be "primetime safe" and in good taste. No personal attacks allowed. Political posting is restricted to the Political Science forum!

Reply
 
Thread Tools Display Modes
  #1  
Old 01-06-2004, 06:39 AM
Spiderm0n's Avatar
Spiderm0n Spiderm0n is offline
O.G.
Location: outskirts of Gotham
 
Join Date: Dec 2001
Posts: 8,344
Mein Auto: 2011 MDX, 2001 330xi
Apple to Introduce a Cheaper iPod

I think its time for me to finally buy one....


Apple to Introduce a Cheaper iPod

Maker Plans Budget Model
In Effort to Fend Off Rivals
And Broaden Its Market
By NICK WINGFIELD
Staff Reporter of THE WALL STREET JOURNAL


Apple Computer Inc.'s iPod was the season's must-have holiday gift, despite its daunting price tag. Now, just weeks after pricey versions of the sleek portable music player were flying off the shelves, Apple is expected to roll out a significantly cheaper version.

Apple is expected Tuesday to introduce a new iPod that costs much less than its current $299 entry-level model, according to people familiar with the matter. (The top-of-the line 40-gigabyte iPod holds 10,000 songs and costs an eye-popping $499.) Analysts believe Apple could price the new iPod as low as $200. While that's more than the $100 figure that has circulated on Apple rumor Web sites in recent weeks, it's still a sharp enough markdown that Apple hopes will attract a much larger audience of music and gadget lovers.

Apple's move is expected to put pressure on a new crop of rivals to trim their prices.

Apple declined to comment on any new products it may be introducing this week, expected to be announced at the MacWorld conference in San Francisco.

Introduced in October 2001, the iPod was the first digital music player to combine huge song storage capacity in a style that hipsters could feel proud about clipping to their belt buckles. The gadget featured a navigation wheel that is regarded as one of the most-efficient ways to comb through a large number of songs.

Price Envy: Holiday shoppers paid top dollar for iPods like this one.


Apple has previously said it has sold more than 1.4 million of the devices, which have become icons of cool among everyone from traditional gadget-heads to music heavyweights. In the video for his hit song "P.I.M.P.," hip-hop star 50 Cent is seen scrolling around the song collection on his white iPod. A slew of slick iPod cases and accessories are available from companies trying to ride the craze.

The first iPod cost $399 and had a PC-like hard-drive with five gigabytes of storage -- enough to hold upward of 1,000 CD-quality songs downloaded from a user's computer. Apple has subsequently crammed more and more storage into the iPod -- the $299 10-gigabyte version stores upward of 2,500 songs.

The iPod was a huge hit this recent holiday season, driven in part by a major advertising campaign, featuring songs from the bands Black Eyed Peas and Jet. Amazon.com Inc. and other retailers periodically sold out of their stock of iPods in the Christmas shopping frenzy. Charlie Wolf, an analyst at brokerage firm Needham & Co., estimates Apple sold 450,000 to 600,000 iPods during the holiday quarter.

"It was right up there with the most popular products this holiday season," says David Weisman, senior director of home merchandising at Crutchfield Corp., a retailer that ran out of its iPod stock at different times during the holidays.

Needham's Mr. Wolf says the underlying components of the iPod, mainly its hard drive, have dropped enough in price that Apple could profitably charge customers $200 for a low-end device with enough space for 1,000 songs, but they likely couldn't slash the price to $100.

The reason, he says, is Apple could potentially steal some market share from the low end of the digital-player market, which is studded with cheap devices that can't hold as many songs in part because they use a different storage technology than Apple. One such device, the Nomad Muvo, costs a mere $63.20 on Buy.com, but stores only about 12 songs -- less than a CD's worth.

Pricing low is risky for Apple, which has made the iPod the linchpin of a broader foray into the music business. Apple also sells downloadable songs for 99 cents each through its iTunes Music Store, but the company has said it makes little profit off the site. Apple Chief Executive Officer Steve Jobs has said he views the music site as a way to sell more iPods. A $200 iPod would likely offer profit margins in the "single-digits or low double-digits" compared with profit margins ranging from 20% to 45% for its higher-end models, says Mr. Wolf.

Apple is also beginning to face tougher competition from big companies in the class of high-capacity music players that it currently leads. Dell Inc. last year started selling a $249 music player with 15 gigabytes of storage, or space for about 3,745 songs. That's cheaper than Apple's lowest-priced iPod and more storage capacity. SonyCorp. and Hewlett-Packard Co. are expected to introduce devices that are more competitive with the iPod. Some competitors are emphasizing features like long battery life for their products. IPod has come under criticism from some users for batteries that don't last long enough.

Apple has a long history of introducing ground-breaking products that are eventually duplicated by competitors. The company's Macintosh computers were the first popular machines to sport user-friendly graphical interfaces, but Microsoft Corp. ended up far surpassing the Mac market with Windows. Some analysts predict the same fate could befall the iPod.

For now though, none of Apple's rivals has created portable players with the coolness quotient of the iPod. It's hard to imagine other electronics devices inspiring the fan sites that have cropped up in homage to the iPod. One site, iPodlounge.com1, features one of the more curious tributes to the device -- a section called "iPods Around the World" consisting of tourist-like snapshots of the devices in front of everything from the ruins at Machu Picchu, Peru, to Kuwait. The site has close to 2,000 photos, submitted by iPod users.
Reply With Quote
Ads by Google
  #2  
Old 01-06-2004, 07:30 AM
hockeynut's Avatar
hockeynut hockeynut is offline
Casey!
Location: Austin, TX
 
Join Date: Apr 2002
Posts: 17,622
Mein Auto: '04 330cic
But can you change the battery?
__________________
SteveH

"Now I guess I'll have to tell 'em...That I've got no cerebellum" - The Ramones, "Teenage Lobotomy"
Reply With Quote
  #3  
Old 01-06-2004, 08:26 AM
jw's Avatar
jw jw is offline
Raoul Duke
Location: Fat City
 
Join Date: Dec 2001
Posts: 12,580
Mein Auto: Great Red Shark
I've been keeping an eye on the Rio Karma player. 20 gb drive and it lets you play .flac and ogg vorbis. I saw a link for one today at $249 after rebate.
__________________
"When the going gets weird, the weird turn pro." - HST
Reply With Quote
  #4  
Old 01-06-2004, 11:00 AM
elbert's Avatar
elbert elbert is offline
Sikkens Autocryl MM
Location: 3907'03.90"N, 10626'43.29"W
 
Join Date: Mar 2002
Posts: 2,817
Mein Auto: Ford Tempo GL
iPod mini $199
Reply With Quote
  #5  
Old 01-06-2004, 11:15 AM
Pete Teoh's Avatar
Pete Teoh Pete Teoh is offline
Vegan, not Romulan
Location: North Cackalacky
 
Join Date: Jan 2002
Posts: 12,971
Send a message via ICQ to Pete Teoh Send a message via AIM to Pete Teoh Send a message via MSN to Pete Teoh Send a message via Yahoo to Pete Teoh
Mein Auto: ****
$249
Reply With Quote
  #6  
Old 01-06-2004, 11:16 AM
Pete Teoh's Avatar
Pete Teoh Pete Teoh is offline
Vegan, not Romulan
Location: North Cackalacky
 
Join Date: Jan 2002
Posts: 12,971
Send a message via ICQ to Pete Teoh Send a message via AIM to Pete Teoh Send a message via MSN to Pete Teoh Send a message via Yahoo to Pete Teoh
Mein Auto: ****
In reverse chronological order:

- It's over
- Jobs is summarizing
- Mac or PC. $249. Shipping next month in the US. April worldwide
- Just one more thing... about the iPod mini. It comes in colors. Gold, Silver, Blue, Pink and Green. A whole family of colors. Anodized aluminum.
- Supports both Firewire and USB2. Can charge from USB2 or Firewire. both cables are supplied. And we supply a new belt clip with it. Two accessories. A dock, and am armband.
- When you turn it on, you don't get some cheesy user interface, you get the same user interface as the iPod. We added buttons to the solid state scroll wheel.
- Even smaller then the iPod. It is the size of a business card.
- Instead of 256MB, it's got 4000MB (or 4GB). Instead of 60 songs, it holds 1000 songs. It is half the thickness of these other MP3 players. And we are going to sell it for $249.
- We are going to introduce the second member of the iPod family today. to go after these guys. It's called the iPod Mini.
- Also these players have a bad user interface.
- So, the iPod. Now I want to go back to this market share data. I want to drill down into this a little more. Now, we look at this, and the iPod has the 31% marketshare. What's the rest? The big chunk is flash... about 60% of that. 30% are Flash players between $100-$200. Equal 30% that's under $100. We looked at this high end flash market and we want to go after that. The under $100 flash players get put into a drawer since they don't hold enough songs.
- Last thing. A new ad. People have really liked the new Ad campaign.
- Second thing is a pair of in-ear headphones. come in a cool box. $39.
- Today, we are updating the 10GB to 15GB today for the same price $299.
- In Oct/Nov. We had a 31% marketshare in units. and 55% in revenue. #1 in the entire MP3 space. We think December #s are going to be higher
- Over 2 millionth iPod sold in December. Showing sales curve. (going up)
Reply With Quote
  #7  
Old 01-06-2004, 12:41 PM
TimmyTimmy's Avatar
TimmyTimmy TimmyTimmy is offline
Officially Welcomed to the 'Fest
Location: Washington
 
Join Date: Sep 2002
Posts: 1,429
Mein Auto: Car
And the battery?
__________________
Reply With Quote
  #8  
Old 01-06-2004, 12:49 PM
Desertnate's Avatar
Desertnate Desertnate is offline
Spelling Impaired
Location: St Louis
 
Join Date: Mar 2002
Posts: 5,598
Mein Auto: '10 Mazda3 HB
Quote:
Originally Posted by TimmyTimmy
And the battery?
Good question...

I hope this doesn't put a damper on the success Apple has had recently. Does anyone know if this problem has cropped up in the desktops?

Apple Problems Brewing
__________________
"In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from the responsibility...I welcome it!" - JFK
Reply With Quote
  #9  
Old 01-06-2004, 12:58 PM
nowonder's Avatar
nowonder nowonder is offline
meh
Location: West Chester, PA
 
Join Date: Dec 2002
Posts: 2,945
Mein Auto: Z4
Quote:
Originally Posted by TimmyTimmy
And the battery?
I don't even have to see one to tell you it won't have a battery compartment.

There is no way to fit one in and keep the current thin form factor, and making it bigger isn't really an option.

So the battery will be power-user replaceable, or apple servicable. just like the current iPods.

--nw
Reply With Quote
  #10  
Old 01-06-2004, 12:59 PM
Pete Teoh's Avatar
Pete Teoh Pete Teoh is offline
Vegan, not Romulan
Location: North Cackalacky
 
Join Date: Jan 2002
Posts: 12,971
Send a message via ICQ to Pete Teoh Send a message via AIM to Pete Teoh Send a message via MSN to Pete Teoh Send a message via Yahoo to Pete Teoh
Mein Auto: ****
It appears to be an internal battery... which is pretty much necessary for something this small.
Reply With Quote
  #11  
Old 01-06-2004, 01:00 PM
Plaz's Avatar
Plaz Plaz is offline
Location: Churzee
 
Join Date: Dec 2001
Posts: 16,136
Mein Auto: '11 1M;'08 MCS;'02 325iT
Maybe this will goad Apple into inventing a pocket-sized cold fusion reactor.
__________________
2011 1M
2008 MCS
2002 325iT
Reply With Quote
  #12  
Old 01-06-2004, 01:01 PM
Pete Teoh's Avatar
Pete Teoh Pete Teoh is offline
Vegan, not Romulan
Location: North Cackalacky
 
Join Date: Jan 2002
Posts: 12,971
Send a message via ICQ to Pete Teoh Send a message via AIM to Pete Teoh Send a message via MSN to Pete Teoh Send a message via Yahoo to Pete Teoh
Mein Auto: ****
Fuel cell is where the action is at. I'd buy a Powerbook with a 10 hour fuel cell.
Reply With Quote
  #13  
Old 01-06-2004, 02:28 PM
elbert's Avatar
elbert elbert is offline
Sikkens Autocryl MM
Location: 3907'03.90"N, 10626'43.29"W
 
Join Date: Mar 2002
Posts: 2,817
Mein Auto: Ford Tempo GL
Quote:
Originally Posted by Pete Teoh
$249
How disappointing.
  • For $50 bucks more you can get a slightly larger "classic" iPod that holds almost 4 times as much.
  • At $50 less, the mini would have been much more competitive with other players, like the Rio that Jobs was comparing to the mini at MacWorld.
  • The current price level could mean the mini would cannibalize sales from other iPods, rather than gaining market share.
Reply With Quote
  #14  
Old 01-06-2004, 04:55 PM
Spiderm0n's Avatar
Spiderm0n Spiderm0n is offline
O.G.
Location: outskirts of Gotham
 
Join Date: Dec 2001
Posts: 8,344
Mein Auto: 2011 MDX, 2001 330xi
Quote:
Originally Posted by elbert
How disappointing.
  • For $50 bucks more you can get a slightly larger "classic" iPod that holds almost 4 times as much.
I think I'll go with the new "classic" 15GB ipod for $300.
Reply With Quote
  #15  
Old 01-06-2004, 05:00 PM
hts hts is offline
I'm a Mac
Location: Phoenix
 
Join Date: Dec 2001
Posts: 17,645
Mein Auto: 03 540iA sport
While I'm no marketing mgr, I predict we'll see another $50 price cut from Apple on the mini within 6-8 weeks (prolly less).
__________________
(sure hope i don't get banned for this benign post).

Current: 2003 540iA M-sport
Previous: 07 Porsche Boxster S, 01 BMW 330i SP, 97 Acura Integra GS-R, 89 Toy Supra, 73 Datsun 240Z
Reply With Quote
  #16  
Old 01-06-2004, 05:02 PM
nowonder's Avatar
nowonder nowonder is offline
meh
Location: West Chester, PA
 
Join Date: Dec 2002
Posts: 2,945
Mein Auto: Z4
I agree, the $50 difference is absurd. It will be interesting to see how sales go.
Keep in mind the great number of people who have between zero and 1000 mp3's total, and the $50 savings would make a difference. Really, there are a huge number of people who don't know what a gigabyte is. There are a lot of people who are just catching on.

Another key market may be Japan... Smaller and cuter is a big deal in that market.


--nw
Reply With Quote
  #17  
Old 01-06-2004, 05:03 PM
Spiderm0n's Avatar
Spiderm0n Spiderm0n is offline
O.G.
Location: outskirts of Gotham
 
Join Date: Dec 2001
Posts: 8,344
Mein Auto: 2011 MDX, 2001 330xi
Quote:
Originally Posted by hts
While I'm no marketing mgr, I predict we'll see another $50 price cut from Apple on the mini within 6-8 weeks (prolly less).
I was just thinking that too. Let the early adopters buy it now, and drop the price soon.
Reply With Quote
  #18  
Old 01-06-2004, 05:05 PM
Plaz's Avatar
Plaz Plaz is offline
Location: Churzee
 
Join Date: Dec 2001
Posts: 16,136
Mein Auto: '11 1M;'08 MCS;'02 325iT
Quote:
Originally Posted by nowonder
I agree, the $50 difference is absurd.
I think people realize that miniaturization costs money. They see teeny cell phones costing more than big clunky ones, low-profile subnotebooks costing more than clunky ones, etc.

To some people, the tradeoff is worth it... if I used an iPod while running every morning, for example, I'd want the iPod mini, with its armband.

The mini also comes with accessories the 15GB low end standard iPod does not include, IIRC.
__________________
2011 1M
2008 MCS
2002 325iT
Reply With Quote
  #19  
Old 01-06-2004, 05:06 PM
Kaz's Avatar
Kaz Kaz is offline
King of Rear Clunks
Location: OC, CA
 
Join Date: Dec 2001
Posts: 12,915
Mein Auto: 01 325iT, 88 M6
Quote:
Originally Posted by elbert
How disappointing.
  • For $50 bucks more you can get a slightly larger "classic" iPod that holds almost 4 times as much.
  • At $50 less, the mini would have been much more competitive with other players, like the Rio that Jobs was comparing to the mini at MacWorld.
  • The current price level could mean the mini would cannibalize sales from other iPods, rather than gaining market share.
I was having this conversation with a coworker. I think it WILL eat into 15Gb iPod sales, but looking at the two side-by-side, especially in person where the size difference will be MUCH more apparent, with the colored metal cases (never liked the all-snow look) and the, IMO, better controls (closer to the original iPod) it's not a bad move at all. Unless you're the type to keep your entire MP3 collection on the iPod or use it as a portable HD, the 4Gb limit isn't a huge deal. And if Apple is smart, they would leave the option (hack) open to swap out the 4Gb MicroDrive with a larger one in the future. I agree, $199 would be the Magic Number for this device, and I'm willing to bet that it will happen sooner rather than later.
Reply With Quote
  #20  
Old 01-06-2004, 05:09 PM
Kaz's Avatar
Kaz Kaz is offline
King of Rear Clunks
Location: OC, CA
 
Join Date: Dec 2001
Posts: 12,915
Mein Auto: 01 325iT, 88 M6
Quote:
Originally Posted by nowonder
Another key market may be Japan... Smaller and cuter is a big deal in that market.
I can guarantee you Japan will go bonkers over this one. The multi-colored metal shell is also very Japanese. Most small metal digicams (Sony P/U/T series, Canon IXY) come in multple colors there where we only get silver.
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > Everything Else > Off-Topic
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump


All times are GMT -7. The time now is 08:32 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms