Jupiter analyst Gartenberg: ‘the market is going to go for Apple iPod nano in a big way’

21 Comments

“The big news here in SF wasn’t so much the iTunes phone but rather the iPod Nano… that’s what caused the most buzz and excitement here. Clearly, Apple meant that bit about 1,000 songs in your pocket again… Pictures do not do this device justice. The form factor is amazing, this clearly fits in our mobile taxonomy in the invisible space. But it’s a real iPod, with scroll wheel and a beautiful hi-res color display. The dock connector is the same so all the key accessories will work just fine with it. With the integration with Outlook with iTunes 5.0 and the small size, I can even see folks using this as a personal information manager… there’s no doubt in my mind that the market is going to go for this product in a big way… At this price point, the Nano isn’t the cheapest 4gb player but that’s not what this product is about. At the moment, there’s nothing else like it on the market,” Jupiter Research analyst Michael Gartenberg writes. “The real question is with a $199-$249 price for the Nano and a form factor that’s so small and elegant, you could carry it and a RAZR in your pocket without noticing either, who is the market for the iTunes phone?”

Full article here.

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21 Comments

  12. I was holding out for the right ipod to replace an older flash player. combines best features of the ishuffle (no skip, small size) with a decent screen.

    I’ll get the black one. but if t-mobile ever got an itunes phone, I’d check it out.

    Reply

  14. I think the phone is great because I can be in the kayak or running or whatever and rocking out, but my calls will come thru. The Nano looks AWESOME, but if I need to be reached (which is most of the time), I gotta use the ROKR.

    Reply

  16. You have to hand it to Apple’s management team for keeping the market on its toes.

    Four years ago, Steve Jobs launched the original 5GB iPod stating that flash players were simply not capable of doing the job that most consumers wanted: they were underspecified in terms of capacity and had awful interfaces.

    So here we are, in 2005, and Apple has now decided that the sweet spot is actually 1000 songs stored in a package that is roughly business card sized on flash memory and at a price of $249.

    Compare this with Sony’s latest Walkman Bean players: comparatively bulky (an iPod nano has a total volume of 1.5 cubic inches, a Sony Bean has a volume of 36.45 cubic inches), a limited interface (1 line OLED vs a 1.5″ LCD screen) and a limited capacity (1GB vs 4GB). And you pay $180 (even if you bought Apple’s 2GB iPod nano, you’d only pay $19 more for twice as much storage, 4% of the bulk, and a wider range of playback formats). The only thing the Bean has going for it is the built-in FM receiver, which is a pity given that FM is a) a dying technology and b) full of stations broadcasting pap (take a bow, ClearChannel).

    Here’s a tip for Sony’s CEO: start preparing your excuses now, because you’re going to have quite a few of these left in the warehouse after Christmas. And here’s a tip for Sony’s shareholders: leave now by forming a orderly queue.

    It’s worth noting that Apple have raised the price of their 4GB offering significantly, but you get better battery life, a better screen, a wider range of functionality and – because of fewer moving parts – better reliability. They’ll probably sell a truckload, will have better inventory management (two colours instead of the four iPod mini variations), have fewer warranty issues and more reliable supplies. They’ll also cost less to transport, so – all factors considered – I wouldn’t be surprised to see Apple’s margins take a slight hike.

    I wish I could see Sim Wong Hoo’s face at the moment…

    Reply

  18. Well now that the iPOD Nano is out (impossibly amazing), Creative (I still chuckle when I here their name) is doomed!

    They will probably now continue on the path of those that get their ass kicked in the market place, litigation ala SCO verses Linux. Creative’s results will be equally impotent of course, but what can they do?

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