RSS RSS Twitter Twitter
apple news/media reports

05/09/2005, 8:35am, EDT

Monday, May 9th

iPod clones, iTunes Video Store coming?

Industry pundit Robert Cringely says desite the success of the iPod, Apple's future is in the iTunes Music Store and perhaps an iTunes Video Store: "The Year of HD is dependent on 10.4 and its H.264 video codec that I believe will be at the heart of an Apple HD video download service to be announced shortly... Ultimately, what Apple wants to do is make its money through iTunes, where the profit margins are better in the long term and the system is easily scalable. It was necessary to create the iPod platform to make this happen. But downward price pressures will eventually hurt iPod profit margins and affect Apple's stock price, so the trick is to know when to switch the business from being a mix of hardware and software to one that is software-only. That switch, which I believe to be inevitable, will happen shortly after Apple begins to license iPod clones."


Filed under: Apple

, , 20comments, del.icio.us, slashdot, digg, buzz , Twitter



20 comments
Reader Reactions (Please use <i></i> for italic text)

subscribe to comments
for this article




Expand All   Global Settings
Sheesh
0
05/09, 9:08am, EDT
Another full of crap article Macnn somehow saw fit to slap on their front page.. WHY!??
Grizzled Veteran
Joined Jun 2001
User is offline
I just don't understand.
0
05/09, 9:22am, EDT
Why do all of these "analysts" insist that Apple must exit the computer business and only sell software?
Fresh-Faced Recruit
Joined Aug 2002
User is offline
Grrr
0
05/09, 9:37am, EDT
Have you even read Cringley before?? He gave a pretty accurate prediction for Carly Fiorina at HP at the time of the Compaq merger and has been accurate on a number of other fronts. Unlike a host of windows hugging PC writers and Mac fanatics, he has taken a rather unbiased look at the tech world and given his opinion. It is nothing more than that, and hardly worth berating MacNN for posting it.
Fresh-Faced Recruit
Joined May 2005
User is offline
Just an opinion
0
05/09, 10:12am, EDT
Cringely has been around forever and actually is quite unbiased. He did the NERDS documentaries for PBS on the beginnings of Apple and MS which speak for themselves. He is far from a hack and is generally has insight that nobody else does since he actually seems to know everyone in the industry. Go read all the columns he's written before-- they're very interesting. He's not always right but he's always got a fascinating theory or two.
Forum Regular
Joined May 2001
User is offline
Re: i just don't
0
05/09, 10:34am, EDT
Why do all of these "analysts" insist that Apple must exit the computer business and only sell software?

Because they suck at making computers. They don't market them. They don't make them to sell in quantity (i.e. cheap), they don't make them to fill more than niche markets (and then overprice them for those markets). The only computer Apple sells that I would call a 'switchers' computer is the mini, because it let's you bring your own monitor, and its fairly cheap. Its also fairly underpowered (its cheap, what do you expect), which isn't going to draw rave reviews for its performance (yeah, I know, who cares, it looks nice, and it'll be a great media-center hub, once you add another $500-$1000 worth of software/hardware). They have the lovely stupid habit of crippling their low and mid-range computers to force people who need a specific feature to buy high-end. Is there any reason that dual-monitor support is disabled in the iMac or iBook other than for Apple to say "Hey, that's a pro feature, you need to spend another $500 and get a Powerbook instead, who cares if there's nothing else in the powerbook you want"? No (esp. since there's a hack that gets it to work, in most cases). Have you ever heard of a PC manufacturer doing something like this? Do you think Dell would put a motherboard in their 3000 line that had an AGP slot, but screwing up the BIOS to disable it, telling customers "You want a replaceable graphics card, you need to buy at least this." (sure, they sell computers without the AGP slot, but cheap mobo in a cheap computer, you expect that. Apple's video cards support the feature, its just being disabled).

BTW, Tiger reportedly adds support (if you're monitor and card can handle it) to rotate your monitors. People are claiming this is great. Me, I see it as an accident, that Apple didn't realize the feature was in the drivers, and that 10.4.1 will disable this feature. They've never liked people computing in any way they don't envision.
Fresh-Faced Recruit
Joined Aug 2001
User is offline
Re: You're an idiot
0
05/09, 10:46am, EDT
Because they suck at making computers. They don't market them. They don't make them to sell in quantity (i.e. cheap), they don't make them to fill more than niche markets (and then overprice them for those markets). The only computer Apple sells that I would call a 'switchers' computer is the mini, because it let's you bring your own monitor, and its fairly cheap. Its also fairly underpowered (its cheap, what do you expect), which isn't going to draw rave reviews for its performance (yeah, I know, who cares, it looks nice, and it'll be a great media-center hub, once you add another $500-$1000 worth of software/hardware). They have the lovely stupid habit of crippling their low and mid-range computers to force people who need a specific feature to buy high-end. Is there any reason that dual-monitor support is disabled in the iMac or iBook other than for Apple to say "Hey, that's a pro feature, you need to spend another $500 and get a Powerbook instead, who cares if there's nothing else in the powerbook you want"? No (esp. since there's a hack that gets it to work, in most cases). Have you ever heard of a PC manufacturer doing something like this? Do you think Dell would put a motherboard in their 3000 line that had an AGP slot, but screwing up the BIOS to disable it, telling customers "You want a replaceable graphics card, you need to buy at least this." (sure, they sell computers without the AGP slot, but cheap mobo in a cheap computer, you expect that. Apple's video cards support the feature, its just being disabled).

BTW, Tiger reportedly adds support (if you're monitor and card can handle it) to rotate your monitors. People are claiming this is great. Me, I see it as an accident, that Apple didn't realize the feature was in the drivers, and that 10.4.1 will disable this feature. They've never liked people computing in any way they don't envision.



Why do people like you even read this board?
Fresh-Faced Recruit
Joined Mar 2004
User is offline
video iTunes
0
05/09, 10:55am, EDT
video would be interesting -- perhaps a video iPod would become a reality.

it would be nice to be able to download missed episodes of TV shows, such as LOST or Battlestar Galatica, etc. Folks I've spoken with use something called Bit Torent to do that now.
Forum Regular
Joined Sep 2000
User is offline
No video store soon...
0
05/09, 10:57am, EDT
There is no way that they will open a video store. Since this is the year of HD they would have to have HD videos available and the smallest you are going to get a standard 100 minute movie in HD quality is around 4GB. The market for customers that have the bandwidth to download 4GB per movie is very small and would never be profitable for Apple or anyone else. Standard Def is possible, but even with H.264 it still would take around 600MB/movie and although that is more reasonable it would still be impossible for most people to download on a regular basis.
Dedicated MacNNer
Joined Mar 1999
User is offline
Clones ?
0
05/09, 11:00am, EDT
Where did I hear that before ? Rebranded Ipods - Yes Clones - No. I doubt that Apple will give others the right to produce Ipod clones, even if the clones were restricted to only buy music from the itunes store like it is at present, because they don't eran money from selling music, but from selling ipods. I woul drather think that Apple would license the ability to supply music to ipods to other music stores. Right now they can't ( all major ones only sell some MS specific crap ) but it would make sense to them, because the Ipod owners out there are the majority and have a huge market share. With the ever greedy Music industry and the tendency to restrict the usage of even the bought music more and more I guess that Apple would rather drop selling music and sell that business to others then cutting ipod sales by giving away a license for cloning them. Nobody from the music industry saw or anticipated Apples success with the Itunes store and selling music over the internet, and after the current success they will rather try to get Apple out of the business and make the money themselves ( or be stupid and rather support MS than Apple ). So the purpose of the store was to have a platform to sell music to ipod owners. Concentrating on making and selling ipods and the itunes software and let others run the stores sounds like logic to me.

Greetings

Thomas
Fresh-Faced Recruit
Joined Apr 2004
User is offline
An idiot?
0
05/09, 11:07am, EDT
Analysts have been predicting Apple should exit the hardware market and go strictly software for years. Yet every year Apple releases something that drops their jaws. Look how many gushing reviews there were for the iMac G5 and Mac OS X Tiger. Apple will not port Mac OS X to Mac clones or open up the iPod until they at least hit 40-50% marketshare. Now the iTMS might work for movies because it has quicktime trailers and music videos. I am just not seeing the connection between music and movies for now. There would need to be a video iPod which will not debut this year. I find it hilarious that now people in the pc world are crying, "Stop! stop! that's a monopoly!"
Senior User
Joined Nov 2002
User is offline
additional comments:..1..2..Next
Your Comments

In order to post comments: If you are a registered member, please login with your MacNN Forums username and password otherwise please uncheck the checkbox below.


Registered Member?
macnn forums login:

macnn forums password:

Not a member of the MacNN forums? Register now for free.

RSS Feeds

Have the latest content delivered to your desktop via RSS. Use the links below to get access to a specific blog, news, or reviews feed.



  MacNN -all

  MacNN Reviews

  MacNN Podcasts

  iPodNN

  Electronista

  Left Lane News
Want To Sell Your Laptop? Any Condition - receive Top Cash. Get an instant quote. Free shipping www.CashForLaptops.com

Internet Marketing School - 100% Online: Master SEO, SEM, E Commerce, Media & More with a U of San Francisco Certificate.

Buy from The Apple Store, iTunes.com, Amazon.com, TechDepot, OfficeDepot, Computers4Sure, or donate.