Software Review

Apple

Microsoft's New Zune: Is the Second Generation Media Player Finally Challening Apple's iPod?

 

 

The news today that the new Zune's from Microsoft were outselling Apple's own enigmatic iPod on Amazon.com got me wondering if this was some sort of trick by Microsoft to create artificial scarcity and repeat their smash of the Xbox 360 or if the player had finally caught on with consumers.

Introduced only a week ago, by this morning Microsoft 's heavily discounted, 30-gigabyte, $134 Zune digital media player was ranked the No. 1 bestseller in the Seattle online retailer's list of top-selling MP3 players in the "Electronics" category. Apple's four-gigabyte iPod nano was No. 2, followed by Apple's 80-gigabyte iPod "classic" at No. 3.

Last week, the Redmond computer giant introduced a new 80-gigabyte Zune player, but they're hard to find. Amazon's site on Monday said they're "temporarily out of stock" and no future shipping date was listed. Microsoft's own Zune site said the 80-gigabyte player can't be ordered until "early December."

In more ways than one, the new Zune's take a strong set of differentia from the first generation and execute more effectively while adding features that truly make it a hipper product. USAToday had a review recently:(read more)

The Largest Retail Music Seller, Wal-Mart, Dabbles in Online MP3, DRM-Free Music Sales, Challenging iTunes Only Channel.

Apple's iTunes/iPod combination has stopped iTunes users from being able to play their music on other devices like mobile phones with music players and other forms of music devices, but iTune's competition takes advantage of using MP3 files so every type of player can, even the iPod, can play the music. And Wal-Mart's announcement of selling online MP3 files at a cheaper price than Apple, is going to force iTunes to cut prices and possible convert to MP3 files to compete with Wal-Mart and Amazon's music site.

The introduction of Wal-Mart's online digital music will disrupt both Apple and Amazon. People will be less inclined to purchase from Apple due to their restrictions and higher price. Because Amazon just launched their beta site that doesn't have some of the highest demanding artists, people will go to where they can easily find what they are looking for.

The following is excerpt from The Wall Street Journal explains Wal-Mart's price and intentions.
Wal-Mart will sell songs without the software -- known as digital rights management, or DRM -- through its Wal-Mart Web site for 94 cents a track, or $9.22 an album.
"As we consistently strive to help our customers shop smart at Wal-Mart, our new 'DRM-free' MP3 digital tracks give them the ease and flexibility to play music on virtually any device at a great value," said Kevin Swint, Wal-Mart's senior director and divisional manager for digital media.(read more)

iTunes DRM-free music sends Amazon to third place, but Amazon retaliates with MP3 format DRM-free music site

AmieStreet.comWhile there are many legit music download stores online, iTunes tends to cast a shadow over them, even pushing Amazon to 4th place in music retail sales. But Amazon, the retail giant that's a pro at creating a smooth, comfortable buying process for the customers and a master of the up-sell, has invested in www.AmieStreet.com, an innovative digital music site of their own.

Apple currently sells their DRM-free music at $1.29 a piece, but the songs on AmieSteet.com start at a price of zero cents. As more people buy a song, the price rises, but never goes above $0.98. Selling a song at market price gives users an incentive to purchase because they can better understand how and why the price is determined, instead of the same price for every song. Because every song on AmieStreet.com is in an MP3 format, any device can play MP3's, including Apple's iPod and Microsoft's Zune.

Music has been considered a social topic that tends to spark many conversations, as AmieStreet's co-founder and CEO Elliott Breece states, AmieStreet.com grew from the idea that we needed to make buying music social and fun. The Amie Street community took over from there, driving a shift toward a music marketplace where consumers decide what is popular and what music is worth.

Because most online music store are tied with a device, Amazon's decision to offer millions of song in the unprotected MP3 format from more than 12,000 record labels gives Amazon an advantage over Apple's restricted format. (read more)

Could Apple Overshoot Market Demand?

LAURIE CAN YOU FIND SOME LINKS FOR SOME OF THE STORIES YOU MENTION BELOW _ THEY'RE SORT OF OUT OF LEFT FIELD - ALSO, THIS NEEDS A GENERAL REWRITE - COMPARE MY TITLE NOW ATTACHED WITH YOUR ORIGINAL FOR CLUES ON THAT FRONT. 

Some may think this has been a tough week as Daniel Lyons is exposed as the Fake Steve Jobs (FSJ) by The New York Times, many FSJ fans compare it to telling a kindergartener there is no Santa. But earlier today, the real Steve Jobs announced Apple's goal is to make the best PC in the world. Jobs undoubtedly believes they are moving in the right direction to meet this goal as he takes a stab a Dell's design that has a tower and is full of wires.


Apple has tied for third place as HP and Dell continue to be the top contenders. As Apple continues their endeavor to create the world's best PC, I believe Apple is pulling themselves out of the typical PC market and creating specialty product. Having the best PC is enticing, but most customers realize there is a price to pay for it and will settle for an average computer that performs the necessary functions.

The iMac an all-in-one desktop computer made of aluminum and glass giving it a sleek look that is elegant and scratch resistant. Depending on the size of the screen, the iMac runs between $1199 and $1499. And each iMac can come with:

· up to 2.4GHz Core 2 Extreme processor
· up to 4GB of memory
· ATI Radeon HD graphics card
· up to 1TB of hard drive storage
· 802.11n and Bluetooth 2.0 built-in

The thought of the worlds best PC should threaten all PC makers, but as Apple continues to obsolete their own products, there is no doubt that they will over shoot the market demand.

Apple's Increase in Popularity With Gen Y Influences Industry Changes Across the Technology Sector

The combination of Apple's casual marketing plan and high quality products have struck a target market that has been hard to reach for most major companies. The tech savvy Generation Y (aka Millennials) have been characterized as being brand apathetic, resenting obvious ad campaigns that target their psychological profile, who are now the Applephiles supporting everything Apple; they also happen to be 32% of the consuming population. Apple's advertisements lately have been mostly for the iPod/iTunes/iPhone line of products, but all that buzz has rubbed off on the less publicized Mac.

While recently Apple's Mac didn't have the most spectacular growth with 26% (compared to competitors, Acer saw an explosion of 164% and Tobisha saw a 54% growth) the story doesn't lie in any specific percentages, it's the fact that Apple understands its target market, which has allowed them to tie with Gateway for market share. But PC makers aren't the only ones that need to worry about Apple growth in their markets, the recent iPhone has demonstrated that any market in the technology sector could be threatened by Apple. The Millennials are a generation big enough to hurt a boomer brand simply by giving it the cold shoulder.

It is first noted in 1999 that Apple realized that targeting Gen Y could be extremely beneficial though they weren't exactly on target when Allen Olivo, Apple's previous senior director for worldwide marketing, said, 'For this generation, the computer is like a hot rod. Still, acknowledging Gen Y early on proved beneficial as some of history's biggest brands got started by bonding with boomers early and following them from youth into middle age.(read more)

Ed Zander's Brand Insecurity Halted Motorola's Chance at Recovering From Steve Jobs' Bold Dismissal of the iTunes Phone ROKR

For the third quarter in a row Motorola's sales have slipped again, this time back 21% to total around $8.7 billion, well below CEO Ed Zander's April prediction of $9.4 billion.

While many industry watchers suspect it was due to pending-up of demand in anticipation of the iPhone release that set most other smartphone makers behind, a more important question investors are asking themselves is what prevented Motorola from creating an iPhone-like product before Apple had a chance to sweep up our collective zeitgeist?

After all, Motorola is the sole licensee of Apple's iTunes software beginning back in 2005, when Zander introduced the first iTunes compatible phone, the ROKR, only to be outshined mere minutes later by the iconic Jobs' introduction of his one more thing in the form of the precedent shattering iPod Nano. (Perhaps Apple was just using Motorola as a diversion for future accusations of illegally tying in the iTunes/iPod ecosystem... hmmm.) regardless of motives, the grudge left Zander preoccupied and may lead to the end of his reign as CEO.

The chance to get back at Apple may have slipped through Zander's fingers since Motorola had the best chance of coming out with a phone that would directly compete with Apple's iPhone. If they had acted more quickly, they could have even taken it one step further by partnering first with Cisco to secure the trademark name iPhone and highlight the presence of iTunes more broadly. But, Zander wasn't confident enough in Motorola's own brand to risk disengaging the firm from customers accustomed to breakthrough products like the RAZR to seize the potential to create new market demand rather than simply hamstring the competition. By not taking advantage of its status as lone iTunes licensee, Motorola lost sight of the end-user's best interests - convergence of iTunes with the mobile phone.(read more)

Is Apple Attacking the Mobile Phone Market from the Bottom-Up Even as the iPhone Attacks from the Top-Down?

In case you missed it, Apple recently entered the mobile phone market with the iPhone, an elegant device designed to converge and replace a mobile phone, iPod, and Internet-computing activities such as email and Web surfing, furnishing consumers with a gadget that can basically do anything you will ever need it to do. But how many people actually use all of that functionality? Did they over-shoot consumer needs with a feature-crammed, overpriced, slow-networked techno-bauble or did they create a new device category that fulfills needs that people didn't know they had?

The iPhone fits better in the more sophisticated smartphone market segment and by selling as many as 700,000 units in its first weekend is expected to sell 10 million units in 2008 which could amount to 5% of the market, far more than Apple CEO Steve Jobs stated goal of 1% market share. However, Apple also appears to be hatching plans to launch a cheaper version of the iPhone to compete in the lower-end and much larger handset market segment (dumbphone anyone?) in the fourth quarter that could be on the future of the ultra-slim iPod Nano form factor, according to a JP Morgan report.

A patent filed on July 5 describing a multifunction handheld device with a circular touch pad control, similar to the Nano's scroll wheel led Kevin Chang of JP Morgan to declare, "we believe that the iPod Nano will be converted into a phone because it's probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano." Because most Americans spend no more than $100 on an cell phone, Chang also believes that a lower-priced, Nano-based phone could sell up to 40 million units.(read more)

Does Apple's Tightly Controlled Ecosystem Strategy Constitute an Illegal Tying Arrangement?

The fundamental weaknesses of an integrated value chain like the one that exists between iTunes and Apple's iPod products and, now, the iPhone, is that even the most fawning of customers inherently rebel - some in the form of hacking the system - against such a compulsion against consumer choice. Today, in the face of growing hegemonic power in realms expanding from media to telecommunications with last Friday's iPhone launch, those same hackers are trying to disintegrate that value chain for themselves, attempting to rid the revolutionary new device from the grip of AT&T's last generation data network.

What defines value for Apple's customers? Well, in addition to the innovation in user experience and design packed into every one of its products, Apple's brand itself is as much the performance defining characteristic that draws legions of loyal buyers to iconic products like the iPhone.

But even as the company protects its inherent advantage by erecting barriers to competition in its value chain, that same source of strength can become the company's greatest weakness. Just as Apple's hegemony in the digital music distribution business has been based on the inseparable linkage between iTunes and the company's iPod media players, the integration between the new iPhone and the AT&T network as the sole wireless carrier presents a target for disintegration that hackers have found hard to resist. What's at stake is nothing less than Apple's compelling value proposition itself - its formidable proprietary product linkages.(read more)

Winners, Losers and Why as iPhone Anticipation Reaches Fever Pitch Before Reality Sinks in Over the Weekend

The ridiculously over-hyped introduction of that most revolutionary of products burdened by such mediocre technical specs, Apple's iPhone is here at last and competitors are putting on a nice front by thanking Apple for building demand for smart phones in general.

Indeed, it seems consumers weren't content to wait the six months for the iPhone as Research In Motion (RIM) announced a three-for-one stock split net income grew a staggering 73% to $223.2 million or $1.17 a share from last year, as revenue climbed 76% to $1.08 billion.

For many, this was rather less surprising as RIM finally penetrated the consumer space with its cool new BlackBerry Pearl and Curve products, adding to its base of corporate customers and solidifying its position at the top of the heap of smartphone vendors... in North America at least.

But for those standing in line at AT&T and Apple retail stores in cities around the country (some since Monday) to get their hands on the new iPhone, RIM, Nokia, Palm, and Motorola all have smartphones that have gained a halo effect of exposure to the marketplace, just by giving consumers a less expensive, business savvy option. In fact, it can be argued by growing the pie for everyone with a rather mediocre product that simply delights prospective buyers with a much-improved user experience, Apple has in fact put wind in the sails of all wireless phone makers and carriers alike by disappointing power users unwilling to part with a few days wages in return for the first generation of anything.(read more)

Categories:

Steve Jobs Spins SDK Absence for iPhone as a Sweet Solution for Developers as Safari and Leopard are Released into the Wild

Apple CEO Steve Jobs let the Cult-of-Mac down softly as he maintained his virtual news blackout on the highly anticipated arrival of the iPhone, scheduled to land June 29th, drawing one lone mention during his keynote address at Apple's Worldwide Developers Conference in San Francisco on Monday. And since he was addressing Apple's growing developer community and their obsession with the impact of the most talked-about and sought-after gizmo in tech memory, it would seem Jobs was forced to borrow a page from the chapter on Turning Bugs Into Features from the Microsoft PR manual to quell revolt.

Spinning the absence of a software development kit (SDK) for the iPhone, Jobs suggested that AJAX and other open standards UI programming principles for the Web would allow developers to create content that looks and behaves exactly like apps and would further mean users and developers alike wouldn't have to compromise on security, reliability or, for that matter, the ecosystem strategy Apple is grafting onto the iPhone from its hegemonic iTunes/iPod franchise.

(read more)

Login

Username:

Password:

Poll

Which CI Software Vendor does your Organization Use?
Acuity
0%
Cipher
2%
Coemergence
9%
Comintell
15%
Digimind
3%
Novintel
18%
QL2
0%
Strategy
5%
Traction
0%
Wincite
7%
OTHER
10%
MULTIPLE
1%
NONE
31%
Total votes: 105

Online

1 guest and 0 users online: