iPod touch: Apple's mobile WiFi platform
updated 06:50 pm EST, Tue January 22, 2008
Apple's record iPod sales
Apple today reported its latest financial results, revealing a record 22.1 million iPod sales over a three-month period. Busy holiday shoppers snapped up the company's portable players in droves, leading to a quarter that surpasses the record level iPod sales reported a year ago. "According to the latest data from NPD, iPod share of the U.S. market for MP3 players in the December quarter was consistent with the year-ago quarter," Oppenheimer said. The average selling price at $181 of the iPod was bolstered by the introduction of the iPod touch and revenue was up 17 percent year-over-year, the highest revenue growth rate in the last year. The company said that there may have been some cannibalization by the iPhone in the US, but that there was no evidence of such in Europe.
"In international markets, according to GFK, we continue to gain market share year-over-year in virtually all European and Asian countries," the executive continued.
Oppenheimer also spoke on the company's iPod touch, a full-screen multi-touch iPod and multimedia browser. The company looked to launch its "mainstrem mobile WiFi platform," which the company believes will help drive sales beyond the current music/media player markets. It said that its "strategic vision" of launching the new platform was achieved, but it admitted that high-end Touch probably sacrificed some unit sales at the current price point.
"One of our primary goals for this holiday season was to establish an entirely new type of iPod in the marketplace, the iPod touch," said Oppenheimer. "This new iPod has potential to grow the iPod from being just a music and video player into being the first mainstream Wi-Fi mobile platform running all kinds of mobile applications."
"Because of the higher cost associated with the large touch-screen, and more powerful processor required to run applications like Safari, this was the most expensive iPod we've brought to market for some time," Oppenheimer added. "So we have the challenge of establishing a completely new type of iPod at the top of the line, at a price point above where we've been for quite some time. And we succeeded."
Last week Apple announced a major software upgrade for the iPod touch with five mobile applications, as well as the ability to watch iTunes movie rentals.
itouch tax
01/23, 07:06am reply
I was seriously tempted to buy a touch, except now I know that every time they upgrade the touch (like adding new applications) they are going to charge money on it, and like any machead worth their status, I know I would not be able to resist the update.
Basically (of all ironies) as much as Steve-o says how much he hates the idea of subscription service for music, now we have the ultimate ignominy of a subscription service for ipods...
chucker
Fresh-Faced Recruit
Joined: Mar 2007
Re: itouch tax
01/23, 07:26am reply
But, remember, he only hates it for music. Renting music is bad, for some reason, but renting videos is OK.
But its technically not a subscription service, since you don't have to keep paying to keep using the iPod. It's more of a 'maintenance plan', where you pay to keep your software up-to-date.
testudo
Fresh-Faced Recruit
Joined: Aug 2001
Not a subscription
01/23, 07:29am reply
A subscription is compulsory for a service to be usable... Apple offer you the choice to pay or not pay, the device will remain at the last level of usability you paid for.
I'm not that keen on subscription services, and totally not for music.
bloodline
Forum Regular
Joined: Jan 2006
U-turn?
01/23, 07:46am reply
The question is whether this "change of heart" in relation to the Touch is a U-Turn or what was always planned, in which case, the early adopters have got bilked yet again or the Touch serves solely as an interim device particularly in territories that have not yet got the iPhone, in which case Apple is cynically ingenious. That's what I'd go for. The only thing that stopped me buying a Touch at launch was the lack of a POP/IMAP mail client. Now, however, I think I'll wait 'til version two, hopefully with about 30GB of storage and who knows what else of which the chipset is currently capable but disabled!
Feathers
Forum Regular
Joined: Oct 1999
Rental as anything
01/23, 08:05am reply
Testudo - I think the answer is to simply look at the pre-digital physical market - there is a proven model for video rental, even subscription based. There wasn't with music. Lots have people have tried to prove Jobs wrong on this point, and have (so far) failed.
It's not the subscription model that's the problem - emusic is subscription based, and does well. It's the rental aspect. There is no public hunger for music rental, only companies hungry to offer it.
Feathers - I don't think it's an interim device. Even in iPhone territories it's a vastly cheaper device as there is no contract cost. I don't buy locked phones.
JulesLt
Fresh-Faced Recruit
Joined: Jul 2005