Dude- I thought the whole video game system market was fucked up. I mean you get a new system, and it's great.... but then a few years later, it's obsolete. But Apple is off the hook... I mean I feel like they just came out with the iPod Photo, and now the regular iPod has the same amount of storage as the gargantuan (by the new iPod standards) iPod Photo (sorry Jimmy...), only it's like a quarter the thickness. I'm probably just going to wait until 2 days after yesterday, when Apple installs a dust-size device on my retina that plays all the music and photos and videos that have ever been created (including "the greatest night of Big Dave's life" at 72 West State) for me.
The thing I don't understand is why Apple is so quick to one-up itself. I mean.. they pretty much have NO competition. And the competition they do have is so far behind them, that not even someone with an iPod shuffle for a brain would even consider any other portable digital music device. If I was Apple, I'd slow everything down. They're barely even giving their other iPod products a chance. I mean, how long ago did the Nano come out? Why the fuck would I buy a Nano, which has 4 GB for $200, when I can buy a regular iPod, with 30 GB, that is a little bigger? It makes no sense. And who's gonna buy a shuffle when they can get the Nano? or the new iPod? They're basically killing themselves to one-up themselves. I just don't understand it. Anyone care to explain it to me?
Wow... who knew Brad was an up and coming Market Analyst?
I do hear you on your points. And I am completely unaware of how extensive the "pipeline" of new products is. I guess if they have enough products in line, then it only makes sense to put things out there. Why not give the consumer more choices of Apple products? Therefore they are that much more likely to buy an Apple product. Now, correct me if I'm wrong, but I'm pretty sure that you can no longer buy the 2nd generation (black & white screen) iPods, nor can you buy the Mini. Your only choices now are the Shuffle, Nano, and the "New" iPod. At least that's all I can find on the Apple Store. That is my only gripe with this whole thing. That's where my point about the fact that the Mini and 2nd gen iPod are basically obsolete. You can't buy them, nor is anyone going to continue to make accessories for them, so basically, in a short while, I'm going to have to buy one of the new models. Whadda ya know... Apple knows what the fuck they're doing afterall. I HAVE TO BUY A NEW MODEL VERY SOON. $$$$ Cha-fuckin-ching! This is where my frustration comes from. When you buy an iPod, and then a few months later, they make a new one that is better, smaller, and cooler. I guess I was way off in saying that Apple was stupid for this... when they are actually the exact opposite. It just pisses me off when the man sticks it to me... and you.
Brad makes some very valid points, with most of which I agree. Especially where he says " Apple is eliminating the competition by becoming the competition." This is evident if you look at the pricing structure of the entire iPod line. Starting at $99 you can own an iPod; at $50 increments up to $399 they create a blanket of upgrades that covers every competitive price point.
It's also very true that Apple combines their products with one's sense of self. However I very strongly disagree with Brad when he says, " Just as many people that purchase Apple's products for rational reasons (such as storage, usage, battery life, color, etc..) will purchase products based on image, style, and visual appeal." Since when is aesthetics not a valid and rational reason to purchase a product? Form and function are interdependent in industrial design. Form is just as important, if not more so, to a consumer's decision making process. Apple prides themselves on their visual and functional concinnity, and rightfully so, each little piece lives in harmony with the other. Both within an individual product and between their other products, including software.
Which is another reason Apple is innovating so fast, they are secretly a software company. Not much of a public fuss is made about their software (with the exception of Mac OS X). Yet their software is amazingly simple to use yet robust enough for professionals. Developing hardware and software simultaneously makes for a fully integrated product and an overall better end user experience. A better experience makes for a better word of mouth sale. Which I would argue, acted as a catalyst for this whole iPod boom in the first place.
Some argue that Apple gets too much credit for being the best innovator in the consumer electronics industry. They may be right. Most products Apple releases have been available in some form for some time. However, they are usually very expensive and you need someone like Jacob, or his company, to set everything up for you. Apple releases the right products at the right times, just as technology and society are ready for them. They know that in order to reach a mass market the product must have an ease of use so that simple tasks can be accomplished intuitively and simultaneously robust enough to satisfy a techno-savvy user with more demands.
Look at how they are selling TV shows now. Sure Sony has had a hand held product that plays video for about a year now. But they didn't integrate it with technology correctly. You have to by a damn separate disc that will only work in a PSP and they are expensive, only a small percentage of savvy geeks get exited about the PSP. They probably released this technology six months too soon without the right software/hardware integration. But with Apple's handheld video, you can simply visit iTunes, like you already do for music, double click on Desperate Housewives for $1.99; bam, it's on your iPod.
Some other things to mention briefly
1.)Halo effect: Many speculate that iPods are creating a halo effect. Meaning iPod owners will switch to Macs. This could be huge because Apple makes much more money selling computers than they do selling iPods.
2.)Third party products: The iPod license and the unique docking connection is an often overlooked aspect of Apple's strategy. If you remember the dock used to be a standard 6pin firewire connection, but they changed it to a unique "iPod only dock." Rumor has it that they are now raising the iPod licensing fee to 10%. That's very high, normal licensing fees are 1-2%. This will bring in millions more in revenue and all they have to do is let third parties use the iPod name and give them the specs for creating a dock connection. They've created an entire industry of products developed that are dependent on their technology. Talk about milking the iPod phenomenon.
3.)Unreleased products: Just because Brad mentioned it, I'd say most of Apple's product development is spent on products that never see market. Their are several rumor and apple fanatic sites where you can see photos of currently unreleased products. Many of which are old at this point and will never see the market and some that look like they are in the works now. Laptops that are entirely a tablet screen and the screen folds in the middle to close; An iPod that transmits it's music wirelessly. There's even rumors that Apple has been trying to invent a musical instrument for the past several years.
But back to Ben's original question. Why the hell did they release this just weeks after the nano? Well, I don't know for sure, but here's my thoughts. Apple is quite good at generating excitement in the media. They do this by throwing little teasers out there that something is coming, but what could it be... This time they released the nano, most everyone in the media cheered. They could've easily released the video iPod that day as well. It wouldn't be uncommon to revamp an entire product line in one announcement. But no, just one week later Apple's marketing department releases a private invitation to the media and developers that is simply a picture of a red curtain with the words "one more thing..." Which, by the way, is usually how Steve Jobs introduces new products in his keynotes. So for about the past month, month and half Apple has been generating buzz in the media. Both for the nano and for the "what's next?!?!" Then they release something like this and boom their stock jumps 9% in one day. It seems to me that Apple is as innovative at marketing as they are at product development.
Sorry, I too, am incredibly bored at work today. By the way Ben, I love the reference to the greatest night of Big Dave's life.
Haha, yeah, if I understood women, I'd be spending a lot less time writing to you fools and much more time getting laid.
Yes, I 'strongly' disagreed with the word rational, the rest of that paragraph made perfect sense.
The halo effect is half hype and half hope. Nothing dramatic has occured yet, and probably won't. But I don't think apple is hoping to be at 50% market share. I think they would like to move from 2% to 6%. Which would be a significant increase and not unrealistic.
5 Comments:
Dude-
I thought the whole video game system market was fucked up. I mean you get a new system, and it's great.... but then a few years later, it's obsolete. But Apple is off the hook... I mean I feel like they just came out with the iPod Photo, and now the regular iPod has the same amount of storage as the gargantuan (by the new iPod standards) iPod Photo (sorry Jimmy...), only it's like a quarter the thickness. I'm probably just going to wait until 2 days after yesterday, when Apple installs a dust-size device on my retina that plays all the music and photos and videos that have ever been created (including "the greatest night of Big Dave's life" at 72 West State) for me.
The thing I don't understand is why Apple is so quick to one-up itself. I mean.. they pretty much have NO competition. And the competition they do have is so far behind them, that not even someone with an iPod shuffle for a brain would even consider any other portable digital music device.
If I was Apple, I'd slow everything down. They're barely even giving their other iPod products a chance. I mean, how long ago did the Nano come out? Why the fuck would I buy a Nano, which has 4 GB for $200, when I can buy a regular iPod, with 30 GB, that is a little bigger? It makes no sense. And who's gonna buy a shuffle when they can get the Nano? or the new iPod? They're basically killing themselves to one-up themselves. I just don't understand it. Anyone care to explain it to me?
Wow... who knew Brad was an up and coming Market Analyst?
I do hear you on your points. And I am completely unaware of how extensive the "pipeline" of new products is. I guess if they have enough products in line, then it only makes sense to put things out there. Why not give the consumer more choices of Apple products? Therefore they are that much more likely to buy an Apple product.
Now, correct me if I'm wrong, but I'm pretty sure that you can no longer buy the 2nd generation (black & white screen) iPods, nor can you buy the Mini. Your only choices now are the Shuffle, Nano, and the "New" iPod. At least that's all I can find on the Apple Store. That is my only gripe with this whole thing. That's where my point about the fact that the Mini and 2nd gen iPod are basically obsolete. You can't buy them, nor is anyone going to continue to make accessories for them, so basically, in a short while, I'm going to have to buy one of the new models. Whadda ya know... Apple knows what the fuck they're doing afterall. I HAVE TO BUY A NEW MODEL VERY SOON. $$$$ Cha-fuckin-ching!
This is where my frustration comes from. When you buy an iPod, and then a few months later, they make a new one that is better, smaller, and cooler. I guess I was way off in saying that Apple was stupid for this... when they are actually the exact opposite. It just pisses me off when the man sticks it to me... and you.
Brad makes some very valid points, with most of which I agree. Especially where he says " Apple is eliminating the competition by becoming the competition." This is evident if you look at the pricing structure of the entire iPod line. Starting at $99 you can own an iPod; at $50 increments up to $399 they create a blanket of upgrades that covers every competitive price point.
It's also very true that Apple combines their products with one's sense of self. However I very strongly disagree with Brad when he says, " Just as many people that purchase Apple's products for rational reasons (such as storage, usage, battery life, color, etc..) will purchase products based on image, style, and visual appeal." Since when is aesthetics not a valid and rational reason to purchase a product? Form and function are interdependent in industrial design. Form is just as important, if not more so, to a consumer's decision making process. Apple prides themselves on their visual and functional concinnity, and rightfully so, each little piece lives in harmony with the other. Both within an individual product and between their other products, including software.
Which is another reason Apple is innovating so fast, they are secretly a software company. Not much of a public fuss is made about their software (with the exception of Mac OS X). Yet their software is amazingly simple to use yet robust enough for professionals. Developing hardware and software simultaneously makes for a fully integrated product and an overall better end user experience. A better experience makes for a better word of mouth sale. Which I would argue, acted as a catalyst for this whole iPod boom in the first place.
Some argue that Apple gets too much credit for being the best innovator in the consumer electronics industry. They may be right. Most products Apple releases have been available in some form for some time. However, they are usually very expensive and you need someone like Jacob, or his company, to set everything up for you. Apple releases the right products at the right times, just as technology and society are ready for them. They know that in order to reach a mass market the product must have an ease of use so that simple tasks can be accomplished intuitively and simultaneously robust enough to satisfy a techno-savvy user with more demands.
Look at how they are selling TV shows now. Sure Sony has had a hand held product that plays video for about a year now. But they didn't integrate it with technology correctly. You have to by a damn separate disc that will only work in a PSP and they are expensive, only a small percentage of savvy geeks get exited about the PSP. They probably released this technology six months too soon without the right software/hardware integration. But with Apple's handheld video, you can simply visit iTunes, like you already do for music, double click on Desperate Housewives for $1.99; bam, it's on your iPod.
Some other things to mention briefly
1.)Halo effect:
Many speculate that iPods are creating a halo effect. Meaning iPod owners will switch to Macs. This could be huge because Apple makes much more money selling computers than they do selling iPods.
2.)Third party products:
The iPod license and the unique docking connection is an often overlooked aspect of Apple's strategy. If you remember the dock used to be a standard 6pin firewire connection, but they changed it to a unique "iPod only dock." Rumor has it that they are now raising the iPod licensing fee to 10%. That's very high, normal licensing fees are 1-2%. This will bring in millions more in revenue and all they have to do is let third parties use the iPod name and give them the specs for creating a dock connection. They've created an entire industry of products developed that are dependent on their technology. Talk about milking the iPod phenomenon.
3.)Unreleased products:
Just because Brad mentioned it, I'd say most of Apple's product development is spent on products that never see market. Their are several rumor and apple fanatic sites where you can see photos of currently unreleased products. Many of which are old at this point and will never see the market and some that look like they are in the works now. Laptops that are entirely a tablet screen and the screen folds in the middle to close; An iPod that transmits it's music wirelessly. There's even rumors that Apple has been trying to invent a musical instrument for the past several years.
But back to Ben's original question. Why the hell did they release this just weeks after the nano? Well, I don't know for sure, but here's my thoughts. Apple is quite good at generating excitement in the media. They do this by throwing little teasers out there that something is coming, but what could it be... This time they released the nano, most everyone in the media cheered. They could've easily released the video iPod that day as well. It wouldn't be uncommon to revamp an entire product line in one announcement. But no, just one week later Apple's marketing department releases a private invitation to the media and developers that is simply a picture of a red curtain with the words "one more thing..." Which, by the way, is usually how Steve Jobs introduces new products in his keynotes. So for about the past month, month and half Apple has been generating buzz in the media. Both for the nano and for the "what's next?!?!" Then they release something like this and boom their stock jumps 9% in one day. It seems to me that Apple is as innovative at marketing as they are at product development.
Sorry, I too, am incredibly bored at work today. By the way Ben, I love the reference to the greatest night of Big Dave's life.
Actually Ben you can still by older iPod models (while they're in stock). You just can't purchace directly from Apple.
check here:
http://www.macmall.com/
http://www.smalldog.com/
http://www.ebay.com/
Haha, yeah, if I understood women, I'd be spending a lot less time writing to you fools and much more time getting laid.
Yes, I 'strongly' disagreed with the word rational, the rest of that paragraph made perfect sense.
The halo effect is half hype and half hope. Nothing dramatic has occured yet, and probably won't. But I don't think apple is hoping to be at 50% market share. I think they would like to move from 2% to 6%. Which would be a significant increase and not unrealistic.
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