macnn/ipodnn
09/09/2008, 4:55pm, EDT
Tuesday, September 9th
UBS: New iPods a 'necessary' move to hold dominance
Apple's fresh iPod-related announcements -- including iTunes 8, along with new Nanos, Touches and Classics -- were a "necessary and appropriate strategy," according to UBS analyst Maynard Um. Rather than pushing any special innovation, Um suggests that the changes were needed to maintain Apple's controlling position in the media player world, where it is faced with competition such as Microsoft's new Zunes.
Um suggests that the price cuts throughout Apple's lines, as deep as $100 in the case of the 16 and 32GB Touches, may prove critical to the iPod's future. They should keep profits and demand high, Um argues, even though they may reduce Apple's gross margins. The analyst further contends that a recent stock pullback does not reflect fundamental problems with Apple, and that the company should have a solid future. UBS has a set a price target for Apple stock of $195, based on 27x of an adjusted FY09 EPS estimate of $7.20.
Filed under: iPod, Investor, Apple
Other story tags: Microsoft, iPod touch, iTunes, Zune, iPod nano, iPod classic
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totally agree
If Apple didn't put out this refresh, the brand new Zune 120 would totally take over the market.
@ Guest
[SARCASM] I totally agree. I mean, seeing how the Zune was such a huge hit an all, its been so hard for Apple to keep the Zune held back and hold its own. [/SARCASM]
is it too late
maybe it's too late. The writing is on the cards, and a new future is zooning towards us. Apple are doomed. It's the 90s all over again because they are only selling N milion ipods these days.
Listening to these people is like watching the cruelty that is interviewing football [soccer to the US readers] players about winning or losing. "well, the lads all worked hard and I got a break in front of goal and I put it in the net. We deserved our victory but they made us work for it"
"Apple had to do XXX or they would have lost their position in XXX market and it's just in time because the opposition are catching up"
Taste the dust of Steve's car in your mouths, Zune users and Microsoft.
A Little Lame
Did UBS analysts not watch the keynote? Zune is not number 2, far from it. I don't really get the UBS comment. Apple refreshed the product-line in time for the holidays, the Nano got thinner, with some added features, as did the touch. The iPod Classic is just that, for those that want the 30,000 song player. I know some people will be disappointed that the 160 GB is gone, but from what got out of the keynote, it just wasn't popular enough. It's the smaller iPods that people are after. I still think iPods are bought by 90% of people to play music, the video features are nice, as are the photos, but I don't think people think they want an MP3-type device so they can watch a movie. Of course Apple kinda had to add it, even though most won't use the video, when joe smoe shopper is trying to figure out what to buy, one can't ignore feature/price comparisons.
Buh-bye
Not surprising they dropped the 160G model, Toshiba will shortly have a 240G HD the same size. The Classic form factor really isn't all that good for watching video, so 120G for mostly music really is quite good enough (even with lossless music as some want).I;'d bet in a year or two we'll see this form totally dropped from the lineup.
The touch is more like a real, very portable video player, notice how it showed the biggest price drop. It's range is now pretty much what the Classic sized players used to be around.