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Yahoo! to have "modest near-term impact" on Apple

Banc of America Securities today said the launch of a new paid music download service from Yahoo! will "have very modest near-term impact" on Apple's iTunes and iPod sales, contrary to reports from J.P. Morgan and PiperJaffray. Banc of America slightly lowered the target price on Apple (to $44 from $47.50) "to acknowledge the risk of increased competition in the MP3 market, with a focus on 2006." The tight integration between iTunes and Apple's hardware has had a "protective effect," according to the report, with a strong connection between iPod and iTunes sales. If the subscription model proves to be popular, the firm said it expects Apple to counter and match with a subscription model of its own, echoing comments made by PiperJaffray.

Gates says Apple shouldn't get too comfortable

Microsoft co-founder Bill Gates says that "Apple shouldn't get too comfortable atop the portable music playing world," according to The Associated Press. In an interview published Thursday, Gates said "I don't think the success of the iPod can continue in the long term, however good Apple may be....I think you can draw parallels here with the computer — here, too, Apple was once extremely strong with its Macintosh and graphic user interface, like with the iPod today, and then lost its position." The interview was published in the German daily Frankfurter Allgemeine Zeitung.

Sonnet to ship PodFreq Black for iPod U2

Sonnet in June will ship PodFreq Black, designed specifically for the iPod U2 Special Edition. This new PodFreq features a unique mix of black and clear materials to match iPod U2. PodFreq is an FM transmitter that fully encloses iPod, adding a channel selection display and antenna. It features an integrated dock with mini-USB 2.0 and FireWire ports for syncing and charging. It utilizes iPod’s line-out signal for the best possible sound quality. PodFreq draws power from the iPod, rather than using batteries. The digital tuner broadcasts to any frequency between 88.3 and 107.7MHz. A car charger is included to replenish the iPod's built-in battery. The limited edition PodFreq Black will sell for $100. PodFreq continues to be offered in white to match the standard iPod.
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