Saturday, October 06, 2007
US Ipod Sales 2001-2006
Hard Drive Shortage Behind iPod Mini Global Delay
TMO Reports - Hard Drive Shortage Behind iPod Mini Global Delay
by Brad Gibson, 3:30 PM EST, March 25th, 2004
Apple Computer confirmed to The Mac Observer Thursday that its announcement in delaying worldwide release of the iPod mini to July is due to a shortage of Hitachi-made hard drives.
"We're consuming almost all of those drives that are being made," Stan Ng, Director of iPod Worldwide Product Marketing, told The Mac Observer. "So we're putting them in iPod minis as quick as we can get them and trying to get them out as quickly as possible.
"The four gigabyte, one-inch drive is a new technology and is really on the cutting edge" he said. "(The manufacturer) is ramping up production to high volumes as soon as possible."
A Hitachi spokesman confirmed to The Mac Observer that the drive has been in "great demand" and that the company has not been able to make enough of the product. The company said it began ramping up production to higher capacity in the last two weeks and expects to start meeting demand "in the next few months."
Neither Hitachi nor Apple have officially confirmed Hitachi makes the iPod drives, but it is widely known among industry watchers that Apple is using the Hitachi drive. In addition, Hitachi is the only manufacturer of a 4GB, one-inch size hard drive. Apple uses a 1.8-inch drive, also made by Hitachi, in the current generation of the Apple iPod.
Earlier Thursday, Apple announced that it was moving the worldwide availability of its iPod mini to July because demand in the United States has outstripped the expected supply through the end of June. Apple said it expected to ramp up its manufacturing of the iPod mini to meet worldwide demand in the July quarter.
Ng characterized the announcement as not a delay but as a "reallocation of the supply that we had planned through June."
"The demand in the US for the iPod mini has just been incredible," Ng said. "It's just been stronger than I think anyone could have expected and that demand is going to consume all the planned supply through June. We were kind of faced with some hard decisions of wanting to make sure we provided the product worldwide but not spreading it so thin that people couldn't buy them."
When asked if Apple underestimated the popularity of the iPod mini in not making enough, Ng responded: "I think we expected it was going to a hit...but demand was stronger than we expected in the US and there was a ramp-up period for these new technologies such as the drive."
Ng would not speculate on whether or not the worldwide delay of the portable player will affect sales internationally.
Analysts believe the decision to delay worldwide sales was the right one, given the momentum of sales in the US.
"They've got a solid market here that is moving product," said Steve Baker, analyst with NPD. "It makes no sense to shut off the supply when the demand appears to be so high. In Europe, because they haven't gotten the product yet, they can continue to build the 'buzz' about its coming. Once you start shipping a product (in the US), you've got to find a way to satisfy demand both from a customer standpoint and a retailer standpoint."
During February, the iPod player was the top portable music player at retail in the US, according to NPD Techworld. iPod unit sales, including two weeks of iPod mini unit sales, captured 33 percent of unit sales - a jump of eight percent since January. NPD's numbers do not include sales of iPod's through the Apple retail or online store.
MP3 competitors lagged far behind Apple's MP3 player dominance at 13.5 percent for RCA, 13.0 percent for Rio and 10.0 percent for iRiver.
Ng said Apple will re-assess pricing of the iPod mini for Europe before the product is available in July, as it promised back in January.
"The currencies are so volatile these days that speculating now or back in January is just premature," Ng said. "As we get closer to that July date, we'll definitely take a look at the (European) pricing, re-evaluate and see what's appropriate for the kind of climate of the currencies at the time."
There was some criticism of the iPod pricing for Europe when it was first announced, with many saying it was not equal in value to that of the price Americans were paying. For example, Apple currently plans on selling the iPod mini in Great Britain for £199.00 including VAT. At today's currency rates, the price would be equal to US$360.00 - US$110 more than the American price tag.
Broadband Engine
The Broadband Engine
AUGUST 25, 2004Adding to the number of recent reports eMarketer has covered ("Broadband: Good News or Bad?" and "Dial-Up Users Converting to Broadband in Droves") is a study from Forrester Research, Benchmark 2004 Data Overview: Consumer Technographics North America.
Authored by Ted Schadler and his team of researchers, and based on a survey of 60,010 households, the report is Forrester's annual guide to technology adoption and forecasts, device ownership and online behavior. Covering a vast range of topics, the study "reveals how closely related broadband access is to consumers' technology use and behavior online."
The information contained in the report makes it clear that consumers continue to integrate technology more deeply into their lives. As it states, entertainment technologies are becoming more digital and portable, communication technologies more personal and important, and productivity and service technologies more ubiquitous.
To quote: "The data shows that broadband is the energizing force of the Internet today: Broadband households treat the Internet as an always-on library, yellow pages, shopping mall, and service center."
According to Forrester, broadband is in nearly 20% of all North American households, or 23.1 million, which is up 4.3 million from last year.
The importance of the numbers, however, is illustrated in the underlying activities consumers engage in while using their broadband connections.
For example, in 2003 DVD players showed huge growth, reaching a 56% adoption rate, but it was the arrival of MP3 players, such as Apple's iPod, and the pivotal role of the PC as a downloading device for music, as well as the PC's role in downloading games, that drove much of the DVD activity and interest. In fact, 20% of the households Forrester surveyed said they downloaded music.
No one disputes the fact that the Internet is growing in importance in the everyday lives of families across the continent — a whopping 97% of online households Forrester surveyed use e-mail, and 78% of them said that e-mail is important in their lives. The rate of broadband adoption, the hunger for more and faster services, is a sure gauge of that importance.
Sunday, September 30, 2007
Digital Muisc Players, by Year (2000-2002)
2000:
Creative Nomad Jukebox
i2Go eGo
I-Jam
One of the Original Five MP3 portables to be released, the I-Jam is blessedly tiny and was the RCA Lyra
Rio 500
Rio 600
Sensory Science Rave MP2100
Sensory Science Rave MP2200
Sensory Science Rave MP2300
Sony Memory Stick Walkman (honorary mention)
2001:
AVC Soul
Rio 800 Exreme
Olympus DM-1
SonicBlue Rio One
Apple iPod (October) - Note - improved battery when compared to competitors.
GIDI Digital Jukebox
Edigitial MXP 100 - $339.00 for the 340MB player, $399 for 521MB, and $449 for the 1GB unit
2002:
Apple iPod (apple.com/ipod) $399, 5 GB
Archos Jukebox (archos.com) $199, 6 GB, $260, 10 GB, $319, /20GB Yes
Creative Labs Nomad Jukebox (creative.com) $230, 6 GB, $249, 10 GB, $399, 20 GB
e.Digital Treo 10 (edig.com) $249, 10 GB, $299, 15 GB
PoGo RipFlash, Recordable MP3 (pogoproducts.com) $179, 128 MB
RCA Lyra MP3 Jukebox (rca.com) $249, /10 GB
Sonicblue Rio 800 (www.rio home.com) $160, 128 MB Y
Sonicblue RioRiot (www.rio home.com) $399, 20 GB
The Ipod Story by numbers
| Price: |
| Date Published: 26 Mar 2006 |
Frost & Sullivan (http://www.frost.com/prod/servlet/report-document.pag?docid=6A44-01-05-01-07&ctxht=FcmCtx12&ctxst=FcmCtx11&ctxhl=FcmCtx13&ctxixpLink=FcmCtx14&ctxixpLabel=FcmCtx15)
Apple’s iPod today has created a phenomenon in the market. It has, without argument, made Apple a leader in the portable digital music player market. Once the market was flooded with MP3 players and its likes but the coming of iPod has had a tremendous impact on the consumer market. The device has moved beyond bits and bytes and is emerging as a fashion statement and lending to the market a perception that all competing products are iPod wannabees.
From 2001, the iPod has been revised many a times and with each new model, came more improvements, added features, price cut. The first iPod was priced to sell at $399 with a 5 GB capacity. A 10 GB model would cost $499. Soon Apple introduced a 20 GB iPod which was to sell at $299 and a 40 GB which would cost $399. Thus prices were being brought down with regards to the storage capacities of the different iPod models. Many versions of iPod have been introduced in the market and then discontinued. Today Apple primarily sells the classic iPod, the iPod Nano and iPod shuffle.
Figure 1-3 shows the storage capacity based on bytes and price points for various iPod models.
Apple has been successfully working around the iPod models - both in terms of form, function and price. From a range of $99 to $399, there is an iPod tailor made for almost everyone. These models have set a new standard in an era which was once dominated by MP3 players, not only because of its ease of use but also the elegant style. While there is an iPod shuffle, if you need the smallest iPod around and there is an iPod Nano, if you need something that is hip, cool and at the same time price sensitive.
With its new lineage and price sensitive models, Apple has an iPod for each of its customer segment. For customers who are new to digital music, and want to be a part of the iPod cult, iPod shuffle seems to be just the right device. With devices like iPod shuffle and iPod Nano in the market, it gives the digital music enthusiasts something to look forward to as well a huge ancillary industry that has taken off to provide equipment to compliment the iPod experience. So whether you are a tech savvy music listener or a fashion geek, there is a iPod to suit your needs and more importantly pocket.
The success of iPod models is evident from the fact that Apple sold 1 million units of iPod Nano and 1.8 million units of iPod shuffle in the year 2005. However, the two hot picks for 2005 were video the iPod and iPod Nano.
The iPod Evolution Adding to Apple's Bottom Line
| Price: |
| Date Published: 26 Mar 2006 |
Frost & Sullivan (http://www.frost.com/prod/servlet/report-document.pag?docid=6A44-01-05-01-04&ctxht=FcmCtx12&ctxst=FcmCtx11&ctxhl=FcmCtx13&ctxixpLink=FcmCtx14&ctxixpLabel=FcmCtx15)
Apple made a breakthrough in the digital music player market and the music industry by announcing the iPod and then the iTunes music store. Since the first model of iPod was launched in 2001, Apple has been working around improving the features of its portable digital music player. With each new model came a better look, increase in storage capacity and ease of use.
The first generation of iPod had a 5 GB hard drive and a capacity to store 1250 songs. However Apple discontinued its 5 GB model soon after July 2002. The second generation came with hard drive capacities of 10 GB and 20 GB and could store up to 2500 and 5000 songs respectively. In addition to offering a higher capacity hard drive, the touch wheel was re-designed and it couldn’t physically turn. Working upon increasing the hard drive capacity of iPod, the second generation was discontinued in 2003.
Apple now introduced the third generation in the iPod series with hard drive capacities of 10 GB, 15 GB and 30 GB. But soon the company replaced the 15 GB model with a 20 GB hard drive and the 30 GB model with a 40 GB hard drive. Apart from increased storage capacities, these models were lighter, had improved software and included features like an alarm clock. The third generation models were discontinued in 2004.
Revising the look, adding more features and increasing the storage capacity, Apple announced its fourth generation iPods. These came with 20 GB and 40 GB hard drives. These models were quite similar to their predecessors. Apple discontinued shipping its 40 GB model in February 2005.
In 2004, Apple announced the launch of iPod mini. These came with a hard drive of 4 GB and 6 GB with a capacity of storing about 1000 and 1500 songs respectively. It became a success, but Apple discontinued the models in September 2005 as the iPod mini was to be replaced by the iPod Nano.
Continuing the lineage of iPods, Apple announced its fifth generation which came with a hard drive of 30 GB and 60 GB. Not only did these models have improved storage capacities, but these models could also play MPEG 4 and video files.
The iPod Nano which was basically the successor to the iPod mini came with a flash memory instead of a hard drive and was introduced in 2005.
Based on flash memory than a hard drive, Apple announced the launch of iPod shuffle in 2005. It came in two models - 512 MB that could store up to 120 songs and 1 GB that could store up to 240 songs.
Chart 1.1 shows the evolution of different iPod models since its inception in 2001.
As mentioned earlier, the year 2001 saw the emergence of the iPod as Apple made its entry in the portable music player market. The first model had a 5 Gigabyte (GB) hard drive and was priced at $399 with a capacity to hold 1250 songs. It became an instant success in the consumer market. Later in 2002, the 10 GB and 20 GB models were introduced with a capacity to hold 2500 and 5000 songs respectively. Since then Apple has been revising its models of iPod working on sleeker designs, playing with the storage capacity and features to meet the needs of a varied demographic of end-users and their price-points and eventually making the iPod into a cultural icon.
In the third generation of the iPod series, Apple produced the 15 GB, 30 GB and 40 GB sizes in 2003. Apple continuously added more features to the earlier models and 2004 saw the advent of fourth generation iPods. They came in two sizes - 40 GB and 20 GB. In line with its predecessors, fifth generation iPod models were introduced in 2005. However, Apple discontinued making the following models: 5 GB, 40 GB (Feb 2005), iPod mini - both 4 GB and 6 GB (September 2005).
A simplified design, added features, and price cuts have made the iPod a roaring success amongst the masses. Today Apple primarily markets the following models:
- iPod (30 GB and 60 GB model)
- iPod Nano (2 GB and 4 GB models. Apple announced in February 2006 the release of its 1 GB Nano and further price cuts for the shuffle series)
- iPod shuffle (512 MB and 1 GB models)
The iPod currently dominates the portable digital music player market. Since its launch in 2001, Apple has sold 41.6 million units in the past four years of which nearly 76 percent of the sales would be accounted for in 2005. In 2003 the 10 GB and 20 GB models did very well. Again in 2004, iPod’s 20 GB model had a great response in comparison to other models. In 2005 the two hot picks were iPod Nano and the Video iPod.
In April 2003, Apple announced its iTunes music store that enabled iPod owners to purchase, download and store music on to their devices. The store had 200 million songs, exclusive tracks from some leading singers. Songs were priced at 99 cents each. All of this packaged together made iTunes again an instant success with 100,000 songs sold in the first five days.
With a big chunk of digital entertainment in its pocket, Apple has had huge success selling iPod and iTunes combination. The mix of the two did a face lift for Apple, a company which at one point had become nonexistent in the PC market.
By the end of 2003, Apple had sold 25 million songs since its launch in April. The year 2004 saw record sales of 200 million songs. With the roaring sales Apple was enjoying and dominance in the arena of digital music, Apple announced in October 2005 the availability of online music videos that the latest model of iPod will be able to play through iTunes. By December 2005, more than 3 million videos had been purchased and downloaded. In February 2006 the 1 billionth song was downloaded through iTunes.
Figure 1-1 and Figure 1-2 show growth of iPod sales and iTunes sales respectively.
The Birth of a Phenomenon: The Apple iPod and iTunes
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The Birth of a Phenomenon: The Apple iPod and iTunes
Having been a trendsetter in the technology market for more than three decades now, Apple has built a number of competitive advantages along the way. What sets the company apart from the rest is the almost cult like brand loyalty that Apple products command. This has been due in a large part to innovative designs for the company's products coupled with their ease of use. From the making of Macintosh in 1980’s to the introduction of the iPod in 2001, Apple has continuously been setting new standards in the IT industry.
Looking at the history of Apple, the iPod is one of the most important products that has been launched by the company. Everything about the design of the iPod, be it its diminutive size, sleek design or intuitive controls, have made it an instant success in the consumer market helping Apple secure over 70 percent of the North American market share. Since its launch, Apple has revised its line of iPods several times and with each new generation came a better look, new features and a sleeker design, enhancing the experience of the iPod owner.
In the world of portable digital music players, no one product has been able to capture the imagination as has the iPod line thus making it the product of choice for a majority looking for a portable digital music player. To add to the success Apple has been experiencing through iPod, the company took a big step in the entertainment business and launched its iTunes music store - an online music store that would let customers purchase, download and organize music.
The iTunes music store changed the way people purchased music legally online. To use the service they need to pay a price as low as 99 cents per song. One of the features of iTunes that has made it popular with users, is the ability to burn songs in unlimited quantities on compact discs (CDs) or transfer them to the iPod player. As of Q1, 2005, the music store features over 2 million songs from some of the major record labels in the music industry and also boasts of exclusive tracks of leading singers. Due to the ease of use, the store was a huge hit with over 2 million downloads within the first few weeks of its introduction.
Since the debut of iPod and iTunes, Apple has become a poster child for the digital entertainment market. By providing the market with arguably the most sought after portable music - and now video - player and complimented by an online store with a large amount of content, Apple has received a much needed boost in the market and further solidified its cult like legacy for design innovation.
However, due to its popularity, the iPod has also spawned a potential threat to the very content it aims to protect and monetize. This insight explores the success of the iPod and the potential dangers it presents by providing people affordable storage and a device to play pirated content.
Ipod Nano cost of parts estimate
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History of Portable Music Players
Carrying a Tune
A look at the technology behind four milestone music players, from 8-tracks to MP3s.
DYNAMITE 8
1972: Designed to look like a detonator, it's the most collectible portable 8-track player of the 1970s.
FRONT PANEL •Track number dial: Shows what song you're listening to. •Single speakerREAR PANEL •Motor: Activated when an 8-track cartridge is inserted; powers the tape mechanism. •Track number dial •Playback head: Converts tape's magnetic pattern into an electric signal. •Plunger: The player's signature feature, it changes songs by shifting the playback head up and down to align it with the right stereo track. •Volume knob •Battery compartment: Three C cells. •Circuitboard: Includes components that amplify signals; holds switches for motor and power. •8-track tape
WALKMAN
1979: The first mass-market player, and Sony's biggest hit since the Trinitron.
FRONT •Take-up reel: Applies tension to the tape. •Capstan: Regulates audiotape's speed. •Pinch roller: Works with the capstan to move the tape. •Tape guides help move the cassette ribbon along. •Playback head: Converts tape's magnetic pattern into an electric signal. •Separate volume controls: For left and right channels.BACK •Controls: For fast forward, rewind, play, stop, and eject. •Pulleys and belts: They drive the movement of tape. •DC power jack •Battery compartment: Two AA cells. •Two headphone jacks: For sharing tunes. •Pause button •Single motor: Controls all mechanical motion of the audiotape. •Circuit-boards: Their components amplify audio signals and handle controls for motor and power.
DISCMAN
1984: CDs are everywhere! Portable music makes the leap from analog to digital.
Laser pickup lens Emits a laser light that reads the CD's underside.
BOTTOM PANEL •Servo motor: Drives the speed and rate at which the optical pickup sensor moves across the disc. •Optical-pickup sled: Moves the optical-pickup sensor along rails.MAIN CIRCUIT BOARD •External battery jack •Line out: Sends the audio signal to an external stereo.MAIN HOUSING •Ribbon connector: Links the main circuitboard to push-button controls, LCD display, and LED readouts. •Volume wheel •Headphone jack •CD window •Rails
iPHONE
2007: The heralded device is the first to combine a music player, phone, and computer.
FRONT VIEW •Glass touchscreen display •Host button: Sends user back to the main menu.FRONT PANEL BACKSIDE •Camera •Antenna wires •SIM card slot •Speaker •Backup battery •Microphone Cellular/Wi-Fi antenna •Ribbon/multipin connectors: They connect the main board with antennas and peripherals. •Main circuitboard (on back): Holds the iPhone's central processing unit (CPU)-and nearly the entire circuitry of the device. •Flash memory chips •Lithium-ion rechargeable battery •Headphone jack and circuit-boardBACK PANEL INSIDE •SIM card •Sleep/wait •Camera aperture •iPod dock opening
'65: William Powell Lear invents the 8-track. Ford makes it optional in all 1966 models.
'68: General Motors and Chrysler catch up to Ford and offer 8-tracks.
1970: DOLBY NOISE reduction introduced for cassettes.
'72: Panasonic's Dynamite 8 is released.
'78: Philips debuts a prototype CD player.
'79: The Soundabout is released in Japan and later renamed the Walkman in the U.S.
'82: First commercial CDs arrive with better sound and longer format.
'84: Sony releases the Discman portable CD player.
'87: Work on digital radio compression begins in Germany.
1990: Sony releases a digital audio-tape Walkman.
'92: MP3 standards developed. Sony's Minidisc is first to use MP3 encoding.
'94: Sandisk releases first compact flash memory card.
'97: MPMAN releases first portable MP3 player in Europe.
'99: Napster and file sharing explode with the dot-com boom.
'01: Copyright issues shut down Napster. Apple introduces the iPod.
'05: Apple debuts the Shuffle, the first flash memory iPod.
- Title:
- The Mytunes Revolution. Fortune (07385587), 07385587, 8/6/2007, Vol. 156, Issue 3
- Database:
- Business Source Complete
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