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Analysts question merits of Apple ‘video iPod’

“Apple Computer already has a smash hit with its iPod digital music player, so it might seem a no-brainer to follow up with one that plays movies in time for Christmas. Not so fast, say analysts and even Apple’s famously secretive co-founder and Chief Executive Steve Jobs himself, as such speculation has mounted in recent months on internet bulletin boards and Apple enthusiast websites,” Reuters reports.

“Brokering licensing deals with content distributors and creators, such as movie studios, is expensive and time-consuming. Also, there is yet to be any sign of great clamoring for portable video players by consumers. There are technical issues to consider, as well as the basic nature of immersing the senses that is required to watch a movie,” Reuters reports. “‘There are already a whole bunch of perfectly capable devices out there that can play movies – and they’re called notebook computers,’ said Mike McGuire, an analyst at market research firm GartnerG2 in Silicon Valley. ‘It’s still an open question whether there’s enough demand, and I think that’s central to Apple’s considerations.'”

Full article here.

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