Jobs offers update on iMac G5, Apple Retail, iTunes success
Apple chief debunks rumors of a slowing online music industry and provides updates on the company's most successful products and strategies.
A very charismatic and aggressive Steve Jobs took the stage at the California Theatre in San Jose, CA on Tuesday. Aside from introducing new versions of the Apple iPod and iTunes software, he offered members of the media an update on the iMac G5, the company's retail strategy, and debunked rumors of a decelerating online music industry.
iMac
"The iMac G5 has received the best reviews of any product we've ever had," said Jobs, who kicked off the event by citing captions from favorable reviews in Time Magazine, PC Magazine, The Detroit Free Press, and The Wall Street Journal. "We're thrilled with these reviews and we think this is going to be a very good Christmas for the iMac G5."
Apple Retail
Apple is now operating 93 stores throughout the US and Japan, which combined to attract over 24 million visitors and generate 1.2 billion in revenue during the company's last fiscal year, Jobs said. He further confirmed that Apple will launch its first store in Europe, in London on Nov. 20th. "This is going to be a fantastic store," he said.
Mini Stores
"The mini store came from an observation actually that we had when the Mini Cooper came out... You know that really cool car," Jobs explained. "We observed that this car wasn't amazing because it was a smaller version of a bigger car. It was amazing because it had been designed as a small car right from the start. [...] We thought could a retail store be like this?"
iTunes
The iTunes Music Store has consistently held a 70% market share week to week. "Everybody has to report their results to SoundScan. 70% market share week in and week out," Jobs said. "Now some people... I've read some articles actually that have said the online music industry is slowing down, and we don't know where that is coming from. We don't normally share our data. We're pretty secretive about it. But I want to share some data with you today. So you can see what we see."
In May Apple sold 10,830,573 tracks, in June 12,331,133, in July 15,103,099, in August 15,665,890 and in September 16,229,956. And although the month of October has yet to come to a close, Jobs said the company has projected sales of 17,776,830, representing an overall 64% growth rate.
Jobs also announce that in November Apple will bring the iTunes Music Store to Canada, but did not specify a precise date.
To date Apple has distributed 85 Million copies of its iTunes software.
iPod
The iPod has become a cultural phenomenon and enjoys a 65% market share of MP3 players, Jobs said. "All the flash players that people get as gifts and never use are in that number." Excluding flashed based players and focusing on those equipped with hard drives, Jobs said the iPod holds a whopping 92% market share.
"Some of our competitors say that we're not offering people a choice. We're offering a choice, they just don't like the choice customers are making."
iPod Socks
Joking that some third parties may make more money on iPod carrying cases than Apple makes on sales of the iPod, Jobs said that the company's industrial design team decided to take a stab at a similar product. "Our design team came up with socks," Jobs said. The iPod Socks will be available in a pack of 6 colors for $29 in mid-November from the Apple Store. They'll keep your iPod warm on cold days, he said.
New iPods
Apple's new iPod Photo will automatically downloads album art and displays it on the color screen when playing music. While watching a photo slideshow on the TV, the iPod screen also displays the next and previous photos.
Jobs said that U2's new single, Vertigo, has done better on the iTunes Music Store than any previous pre-release track. He also announced the U2 collection--the first digital box set in the world--which will contain U2s entire catalog of 400 songs, plus over 25 rare and unreleased tracks. The collection, valued at $400, will be available exclusively through iTunes for $149 in November. Included with the special edition U2 iPod is a collectable U2 poster, and a $50 coupon towards the the complete U2 box set.
A very charismatic and aggressive Steve Jobs took the stage at the California Theatre in San Jose, CA on Tuesday. Aside from introducing new versions of the Apple iPod and iTunes software, he offered members of the media an update on the iMac G5, the company's retail strategy, and debunked rumors of a decelerating online music industry.
iMac
"The iMac G5 has received the best reviews of any product we've ever had," said Jobs, who kicked off the event by citing captions from favorable reviews in Time Magazine, PC Magazine, The Detroit Free Press, and The Wall Street Journal. "We're thrilled with these reviews and we think this is going to be a very good Christmas for the iMac G5."
Apple Retail
Apple is now operating 93 stores throughout the US and Japan, which combined to attract over 24 million visitors and generate 1.2 billion in revenue during the company's last fiscal year, Jobs said. He further confirmed that Apple will launch its first store in Europe, in London on Nov. 20th. "This is going to be a fantastic store," he said.
Mini Stores
"The mini store came from an observation actually that we had when the Mini Cooper came out... You know that really cool car," Jobs explained. "We observed that this car wasn't amazing because it was a smaller version of a bigger car. It was amazing because it had been designed as a small car right from the start. [...] We thought could a retail store be like this?"
iTunes
The iTunes Music Store has consistently held a 70% market share week to week. "Everybody has to report their results to SoundScan. 70% market share week in and week out," Jobs said. "Now some people... I've read some articles actually that have said the online music industry is slowing down, and we don't know where that is coming from. We don't normally share our data. We're pretty secretive about it. But I want to share some data with you today. So you can see what we see."
In May Apple sold 10,830,573 tracks, in June 12,331,133, in July 15,103,099, in August 15,665,890 and in September 16,229,956. And although the month of October has yet to come to a close, Jobs said the company has projected sales of 17,776,830, representing an overall 64% growth rate.
Jobs also announce that in November Apple will bring the iTunes Music Store to Canada, but did not specify a precise date.
To date Apple has distributed 85 Million copies of its iTunes software.
iPod
The iPod has become a cultural phenomenon and enjoys a 65% market share of MP3 players, Jobs said. "All the flash players that people get as gifts and never use are in that number." Excluding flashed based players and focusing on those equipped with hard drives, Jobs said the iPod holds a whopping 92% market share.
"Some of our competitors say that we're not offering people a choice. We're offering a choice, they just don't like the choice customers are making."
iPod Socks
Joking that some third parties may make more money on iPod carrying cases than Apple makes on sales of the iPod, Jobs said that the company's industrial design team decided to take a stab at a similar product. "Our design team came up with socks," Jobs said. The iPod Socks will be available in a pack of 6 colors for $29 in mid-November from the Apple Store. They'll keep your iPod warm on cold days, he said.
New iPods
Apple's new iPod Photo will automatically downloads album art and displays it on the color screen when playing music. While watching a photo slideshow on the TV, the iPod screen also displays the next and previous photos.
Jobs said that U2's new single, Vertigo, has done better on the iTunes Music Store than any previous pre-release track. He also announced the U2 collection--the first digital box set in the world--which will contain U2s entire catalog of 400 songs, plus over 25 rare and unreleased tracks. The collection, valued at $400, will be available exclusively through iTunes for $149 in November. Included with the special edition U2 iPod is a collectable U2 poster, and a $50 coupon towards the the complete U2 box set.
Comments
Apple's poised to do very well. Perhaps it's time for a few juicy aquisitions now that the coffers are well stocked
Originally posted by salmonstk
I thought the iPod Socks was a joke...
A joke? are you kidding me? Why else do you think the stock is through the roof today! 6 socks for $30. Sure, you could use an old, smelly, sweat sock, but these things come in colors!
Originally posted by Louzer
A joke? are you kidding me? Why else do you think the stock is through the roof today! 6 socks for $30. Sure, you could use an old, smelly, sweat sock, but these things come in colors!
Don't forget the little tag with the colored Apple logo on each sock. That will seal the deal for most potential buyers.
Kasper
Originally posted by Gavriel
One possibly worrying aspect of this presentation was that Apple cited several worshipping reviews of the iMac G5 but not a single mention of how its been selling. This could of course be nothing. Maybe it hasn't been shipping long enough to quote sales numbers yet? What are your thoughts?
Its not selling. Not at all. They can maybe get 5 out the door a day, it seems like. They're way back-logged into november now (according to reports and Apple's store, which no longer lists "Yesterday" as a delivery estimate).
There might be demand for it. Its hard to say. Apple's iMacs tend to get more press then actual purchases, sometimes.
But it can't sell as bad as Dalmation or Flower Power (at least I'd hope not...)
Originally posted by Louzer
Its not selling. Not at all. They can maybe get 5 out the door a day, it seems like. They're way back-logged into november now (according to reports and Apple's store, which no longer lists "Yesterday" as a delivery estimate).
There might be demand for it. Its hard to say. Apple's iMacs tend to get more press then actual purchases, sometimes.
But it can't sell as bad as Dalmation or Flower Power (at least I'd hope not...)
Hmmm...so you've contradicted yourself here. Maybe you don't even see it. It sounds like it is selling a lot...but DELIVERY is constrained by shipping/manufacturing.
Originally posted by starbird
Anyone know if the "Digital" U2 box set will allow purchase of songs individually? I am a HUGE U2 fan, And I already have every CD they ever release, most singles on CD for the B sides, and vinyl of all album releases. and an iPod, with all said U2 tracks on it. I just got my iPod last Christmas, and was hoping to spend the money I am saving on a new iMac or iBook. Will I have to get this whole box set as well?
I don't have any official knowledge, but I'd think it would be a mix of songs available as singles and songs available in Album only.
You can probably guess which ones are going to be Album only. Think about it. The only reason a U2 fan would buy it would be the limited tracks.
theFly
Originally posted by AppleInsider
In May Apple sold 10,830,573 tracks, in June 12,331,133, in July 15,103,099, in August 15,665,890 and in September 16,229,956. And although the month of October has yet to come to a close, Jobs said the company has projected sales of 17,776,830, representing an overall 64% growth rate.
Do the numbers include the European stores? Didn't they open in July?
If so, they really aren't growing that fast.
Several dynamics are working here:
1). Accelerating sales of iPods (two million last quarter)
2). HP inventory now full with access to over 122,000 outlets.
3). Nine new country stores open for business. Canada added next month.
4). iPod Photo and U2 iPod.
5). Huge advertising budget.
Conservative projection of 3,500,000 pods in Christmas quarter.
Still possible to see flash pods before the holidays.8)
Originally posted by Mr. Bob
Still possible to see flash pods before the holidays.8)
Steve Jobs said almost at the top of the announcement how much those flash players suck. You think they are already in development?
Think Again. Both iPod, and mini is selling like wild fire, and I'm actually going to pick up a new one in few days. My Original 5 gig is just not big enough anymore.
Originally posted by BuonRotto
[groucho]I've heard of stocking stuffers, but this is ridiculous!" [/groucho]
Originally posted by Gavriel
One possibly worrying aspect of this presentation was that Apple cited several worshipping reviews of the iMac G5 but not a single mention of how its been selling. This could of course be nothing. Maybe it hasn't been shipping long enough to quote sales numbers yet? What are your thoughts?
Speaking as an Apple Reseller in the UK, the G5 iMacs are flying off the shelves - I would guess that the sales figures are pretty high from our shop at least.
Originally posted by gsxrboy
Gosh, we can almost start thinking realistically about a cool million songs a day in the almost foreseeable future...
Expect that for Christmas '05:
500 M songs sold
1 M songs a day.