The Mac Professional's Resource
As Apple prepares to report on its first quarter results in a couple of weeks, expect to hear a lot of things about iPhone and iPhone sales. Many say that Apple is looking good to meet their sales targets 10 million units by the end of 2008 having sold nearly 5 million handsets so far.
In order to meet its targets, Apple is relying largely on growth in new markets, including Europe and Asia. The iPhone has been on sale in Europe only a few months, and its success depends largely on who you ask. In early December people touted that the iPhone was doing better than expected but by the end of the month, some outlets reporting iPhone sales failed to meet their projections, at least in the UK. In France, the iPhone sold 70,000 units in line with projections, but almost half of those were in the first week.
Apple may still meet its projections, but if the iPhone is going to be continued success in world markets, there will probably be some changes needed after the initial contracts run out. Partnering with AT&T in the US made sense because consumers here are used to being locked into one carrier. In Europe, where people are used to plugging their SIM cards into whatever device they think is necessary, and where some countries outlaw locked phones, things are a little different. I think Apple could have gone into Europe without exclusive carriers, but without the same Apple Store infrastructure, they needed some sort of incentive to get their products on retail shelves.
The other big problem with the iPhone is the price. Although the iPhone price is similar to competing smart phones, various things conspire to make it a lot less of a good deal in most of Europe. In France, the price of 399 Euro would equal $589. In the UK, the price is equivalent to $531. To get an unlocked phone will run you even more. Yes, straight currency conversions are not a particularly good judge, and non-US customers pay the Apple Tax on all of their products, but with more handsets available from more carriers in the EU, they might have to change their strategy.
— Joe Fahs
Every year numerous computer and/or consumer electronics companies hail that the age of “Golden Convergence” is going to be coming any day now. Every year, consumers laugh at what the companies are offering, and for the most part reject what are really half-assed attempts to squeeze more money out of consumers without providing that much more value.
In the latest news, Apple is thinking about movie rentals, NetFlix is thinking about releasing a set-top box for their downloads, and Tivo is trying to get people to remember that they can download using Amazon’s Unbox. Which one will win? Probably none of them. There are flaws to the way each company has gone about doing things, and with so many people fighting for a piece of such a small pie, nobody is making any progress.
Therefore, I say that Apple buys NetFlix and Tivo and rolls together a bunch of content offerings and distribution methods. Why? I like the way AppleTV brings the content to your home theater. I like the way NetFlix allows you to get a DVD in the mail, and they already have a huge subscriber base to grow from. Finally, I like the way that UnBox and Tivo remember what you have ordered, so if you can’t make everything fit on your computer, you can download it again without a penalty.
Of course I am idiot for thinking anything this sensible can happen, but a guy can dream, can’t he?
— Joe Fahs
Earlier this year, Steve Jobs wrote an essay saying that DRM should be abolished. Some people called it hypocritical because Apple has always been tenacious with protecting patents, but I think it shows a genuine frustration with the record labels and the growth of alternative forms of music distribution. Since Apple is the leader of alternative forms of music distribution thanks to their iTunes Music Store, any move that makes music more free seems to benefit apple.
A few months later, Apple partnered with EMI to release DRM-free downloads, but rumors are suggesting that Jobs will take things a step further by partnering with Hip-Hop Mogul Shawn Carter, who you probably know better as Jay-Z to form their own record label. Some people are going to look at this deal and wonder what Jobs was doing, because despite Jay-Z’s success as a business man and performing artist, there will be some negative connotations to his style of music. However, there is a lot of potential in this deal.
Taking a look at iTunes demographics, I think Apple made a savvy move. Although their new label might only be a drop in the bucket at first, there is a potential for Beyonce to join, and if they are successful, I could see other successful bands willing to do think differently about how they make their albums. In the meantime, Apple will be building their brand with some of the most recognizable names in pop culture. Even better, they get to stick it to Universal (Jay-Z) and Sony (Beyonce) at the same time.
— Joe Fahs
If you have ideas for stories or analysis, create an account on our forum and let us know.
— Tom Ierna
Over the holiday break, rumors began to fly about a new Apple iPhone update which would bring along several feature enhancements including a customizable home screen and the “Locate Me” quasi-GPS built into the Google Maps application. Since the original story came from a web site that did not have much of a record within the Apple rumor game, some people were skeptical, at least until more comprehensive video proof started to come out.
Since I have been a big wimp about hacking my iPhone, I am excited for a lot of this new functionality despite the glaring lack of proper MMS. Users of modified iPhones are already bracing for the update to break everything once again. Apple has promised to release a full SDK for the iPhone later in the year, so there is hope that the update-and-pray cycle will come to an end eventually.
— Joe Fahs