Analysts expect video iPod from Apple, discuss price points

“On Tuesday, Apple fanned the flames of interest by sending out and e-mailing invitations to an Oct. 12 event at the California Theater in San Jose, Calif., enticing invitees with the text ‘One More Thing…’ accompanied by a picture of a closed red curtain,” Rex Crum reports for MarketWatch. “Speculation has immediately centered around another change to Apple’s line of iPod music players, and the company has precedent on its side. It was almost exactly a year ago that Apple used the same venue to debut the iPod Photo and U2 iPods at an event that featured Bono and The Edge of the band U2.”

“Industry analysts believe Apple is set to show off a long-awaited video iPod that can play music videos and other visual programming. Performance upgrades to Apple’s line of Macintosh computers could also be on the agenda,” Crum reports. “Gene Munster of Piper Jaffray said that a video iPod would definitely have a “wow factor” upon its release but that it would need to cost less than $400 and have a sizable library of downloadable videos available when it launches in order to avoid becoming a niche product. Shaw Wu of American Technology research echoed Munster’s comments about a video iPod’s price, adding that a $299 price tag would be preferable for the new product as anything higher could make it difficult for Apple to spur rapid sales. Wu said that, based on channel checks and industry sources, the first video content through Apple’s iTunes service would come in the form of music videos and video podcasts, with movies possibly arriving at a later date. Wu also said he believes Apple will refresh its Macintosh link with faster PowerPC processors as the company enters [its] transition to using Pentium chips from Intel Corp.”

Full article here.

“A video player might also help Apple boost the iPod’s average selling price, Banc of America Securities analyst Keith Bachman said. As Apple has introduced lower-cost players, including the $99 iPod shuffle, the average selling price for the devices fell to $179 last quarter from $290 a year ago… The company also may introduce faster Mac computers next week… Bachman wrote in notes today to clients.”

Full article here.
We love it when the analysts speculate on retail prices for unannounced products with unknown features and capabilities almost as much as we loved hearing from them that the iPod mini was “overpriced” upon its debut.

Related articles:
BBC 6 Music reports Apple video iPod to be unveiled in London next week – October 05, 2005
Report: Apple’s ‘One More Thing’ special event to feature PowerBook and Power Mac, not video iPod – October 05, 2005
Leaked Apple ‘iPod video’ spy photos? – October 05, 2005
Analysts: Apple all but certain to introduce video iPod – October 05, 2005
Report: Apple to launch video iPod next week – October 04, 2005
Apple invites media to ‘One More Thing’ special event on October 12 – October 04, 2005
Jefferies & Co. analyst: checks indicate Apple started video iPod production last month – October 04, 2005
UBS: Mac momentum continues building, Apple could sell 10 million iPods in holiday quarter – October 03, 2005
RUMOR: Apple to deliver new iPod, Power Mac, PowerBook models this month – October 03, 2005
Apple adds video to iPod trademark – August 03, 2005
Video iPod? Does The Wall Street Journal have a ‘Deep Throat’ inside Apple Computer? – July 25, 2005
Disney CEO Iger meets with Apple, Pixar CEO Steve Jobs to discuss distribution deal, video iPod – July 22, 2005
NY Post: signs point to Apple’s iTunes+iPod video plans – July 19, 2005
Report: Disney considers teaming with Apple to deliver iPod video content – July 19, 2005
More info about Apple’s reported iPod+iTunes video talks – July 18, 2005
WSJ: Apple in video iTunes talks, may unveil video iPod by September – July 18, 2005
Cringely: Apple working on HD movie download service and Video iPod – July 15, 2005
Report: Apple Computer to launch ‘Video iPod’ by 2006 – April 11, 2005

23 Comments

  1. Personally, I reckon that some Apple product released at some time in the future will cost about $500 give or take a $100 or. In addition there may also be other models with differing specs available at other prices.

    Although I would love new products, I also think it would rock if Steve Jobs came on and referenced the two pockets for the iPod and for the iPod Nano then pointed to his back pocket and asked what that was for – it’s for record companies to kiss.

  2. I think we can assume the video iPod is real. As the rumors get more and more intense, they reach a point where Apple has to publicly deny them if they’re not true. Otherwise, Apple’s stock is set for a huge hit after the “disappointment” of whatever Apple does announce.

    Apple has denied rumors before. (Remember when the media outlets were reporting that Apple was getting ready to buy, what was it, Sony Music?) When the rumors get this far along and Apple says nothing, they’re usually true.

    Examples:
    — Headless iMac
    — Mac switches to Intel
    — Flash-based iPod

    Each time the rumors were furious, and each time Apple said nothing. Just like now. This video iPod is real.

  3. video ipod!! there is no way apple is going to let this holiday come and go with no big release…last year was the ipod photo and yes the nano is great, but there are a lot of flash players out there..and a lot of higher-end gadgets (like, quite a few video players already) that if apple doesnt have something, i think ppl are going to settle for 2nd best.

  4. Whatever is going to happen, I know Steve Jobs is reading all these rumors and laughing his turtle-necked vegan butt off.

    The sheer amount of hyperventilating that is going on is good for entertainment value alone!

    MW: Feed, as is in “Feed me, Seymour!”

  5. Peter:

    That thought crossed my mind too. Wasn’t Steve in serious discusions with Sony some time ago? Maybe to arrange for Apple to “adopt” the UMD format for handhelds? After all, many of the new releases are coming out on UMD. Why would they do that if the PSP were the only unit able to use them?

    MW = middle, as in “stuck in the middle with you”.

  6. What are these analysts going on about? The iPod photo was the first Pod with a color screen, and was the most pricey model.

    Apple tends to unleash new iPod tech at the high end, and eventually bring it down to the rest of the grid. The entire line just went color screen last month, so I doubt any new Video Pod would debut at the cheaper models.

  7. My prediction for the iPod “video” prices…

    $399 40GB
    $499 80GB

    With Apple keeping the current 20GB iPod (with color screen/photo) in the lineup at $299 and discontinuing the current 60GB model.

  8. I think that both the xPod and the new macs will play UMDs

    This way Apple doesn’t have to go into the market of playing video by itself

    Who’ll need Blu-Ray when UMD and regular DVDs will have all the marketshare?

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