“Steve Jobs, founder and chief executive of US computer giant Apple, was in jubilant mood last week. And deservedly so. In short order he has lured millions of us to become iPod addicts. And the result? Sweet music. Apple has been able to report its best ever financial results with its flagship new product, the iPod portable music player, selling 28m units and capturing a whopping 75% of the digital music player market,” Tony Glover, Technology Editor for The Business Online, writes. “The driving force behind these stellar results is not the range of Macintosh computers that Apple invented and spent the last quarter of a century perfecting. It was the iPod, a pocket-sized music player, whose first version Apple launched only four years ago. Apple shipped 876,000 Macintosh computers during the quarter ending June 2005 and almost as many iPods at 860,000.”
Glover writes, “Audiences across the world reacted to the announcement of the new iPod with rapturous applause. But success brings its own challenges. Despite the enthusiasm for Apple’s latest iPod, it was hard to tell who was more nervous – Jobs or the increasingly jittery investors who sent Apple’s shares on a roller coaster ride last week. Many investors privately admit that Apple’s growing reliance on digital music players for future growth is causing concern. One US analyst told The Business that he had serious misgivings that Apple had become too dependent on maintaining an impossibly high market share in portable digital music players to drive its entire range. Jobs makes no secret of the fact that the iPod is seen as the hook which draws customers into the Apple stores and into the wider world of Apple computing.”
Glover writes, “But underneath Jobs’s California cool, which he wears like a suit of armour, there was clear evidence of strain as the man in black unveiled Apple’s latest offerings. Right from the start of an hour long one-man show, Jobs was in hyperdrive. ‘Isn’t this cool? . . . this is so cool… I think . . .we think this is so hot,’ he babbled while showing film trailers on Apple’s latest Mac desktop computer. Like some balding and embarrassingly hip middle-aged uncle at a family gathering, Jobs pulled faces for a series of ‘teenage effects’ designed to show off the Macintosh computer’s inbuilt web camera.”
“Firms like Microsoft and Toshiba are retailing devices similar to the iPod range in almost every way. They are pitched as being a better choice for customers using Microsoft-powered PCs and laptops, by far the majority of computer users. And the price of digital music players is falling with Far Eastern manufacturers already developing devices that retail for a small fraction of the iPod’s hefty price tag,” Glover writes.
“Video is a market where Steve Jobs already faces serious competition, not least from his old nemesis Microsoft founder Bill Gates,” Glover writes. “Microsoft software already powers a portable video and music player, the Zen Vision. Zen has been shipping since last November video-enabled players with much bigger colour screens than the new video iPod and holding up to 85 hours of video, 9,000 songs. Last year, Samsung launched a similar device running Microsoft software, the oddly named Samsung Yepp YH-999 Portable Media Center.”
“While these products may not yet be perceived as being as ‘cool’ as the new video iPod, they are compatible with Microsoft’s broader product range. These include the Media Center software than runs computers designed to double up as TVs for watching home movies and videos downloaded from the internet,” Glover writes.
“Apple computers are also unpopular with computer gamers, a crucial application for portable video. Many of the best games developers do not bother to design games for Apple computers because most people have Microsoft systems in their offices and homes,” Glover writes. “As one industry delegate leaving Apple’s product launch last week was heard to comment: ‘It looks as if Steve Jobs may have opened up another new market for Bill Gates.'”
Full article here.
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In the quarter ending June 2005, Apple shipped 1,182,000 Macs, and 6,155,000 iPods, not 876,000 Macs and 860,000 iPods as Glover states. The rest of Glover’s tripe, some of it embarrassingly and transparently envious of Jobs and Apple, is at least as wrong as his Mac and iPod shipping numbers. To us, Glover’s apparent love of Microsoft software trumpets the fact that he’s obviously never touched a bit of Apple software in his life. Glover is very confused: running Microsoft software is a liability, not a selling point. And does he even realize that, oh, by the way, iPods and iTunes are compatible with both Macs and Windows PCs?
Perhaps, when it comes to on-stage presentations, Mr. Glover prefers these examples:
• Bill Gates simply can’t get Media Center to work at CES 2005
• Microsoft CEO Monkey Boy dances, screams, and sweats profusely
[Note: in the most-recent quarter ended September 24, 2005, Apple shipped 1,236,000 Macs and 6,451,000 iPods]
Contact information:
The Business
Technology Editor
Tony Glover
020-7961 0046
Related article: Interview with ‘Just Say No to Microsoft’ author Tony Bove now online – October 17, 2005
Mac users should not buy Microsoft software (or hardware) – May 16, 2003
WOOOOOOOOOOOOOOOOOO! WOOOOOOOO! WOOOOOOOOOOOOOO! WOOOOOOOOOOOOOOOOOO! WOOOOOOOO! WOOOOOOOOOOOOOO!
I have four words for you!
I
LOVE
THIS
COMPANY
WOOOOOOOOOOOOOOOOOO! WOOOOOOOO! WOOOOOOOOOOOOOO! WOOOOOOOOOOOOOOOOOO! WOOOOOOOO! WOOOOOOOOOOOOOO!
———-
Is that eloquent enough for ya, Glover? Damn, that Ballmer is one smooth talker.
Five more words:
Give it up for ME!!!!!
MDN word: true As in: It is true that Ballmer actually said this on stage. I think that proves that he is psychotic.
I wish Steve were MY uncle.
Yet another spineless, M$FT lapdog posing as a journalist. Too bad they can’t be jailed for impersonating a professional journalist.
Mafia$oft is imploding and no amount of FUD can stop that natural process. Karma is bitch!
The article reads like an ad for Microsoft.
I really do believe they pay people to attack competitors, it’s just another sleazy day at Microsoft where office chairs crash through walls and the CEO threatens to “fucking kill” the other guys…
If this hack thinks Monkey Boy is a better performer than SJ, then he needs to have his apartment searched for Class A narcotics. I ain’t kidding!
Hey Tony, I got four words for you:
Steve Ballmer Blows Goats
Microsoft has nothing to offer except viruses and trojan worms. There online music business is a failure like the rest of them. Glover obviously hasn’t looked at the numbers. 75% marketshare goes to the iPod and Apple computer not Microsoft. All of the other MP3 players lack inovation and ease of use and the combination that the iPod gets right when using the ITMS. The front row example was perfect when showing Apples ease of use versus the others. 6 buttons to do everything with front row while Microsofts media center needed 43-46 buttons.
Steve Jobs has the right to be upbeat as he has turned Apple around and has a good plan in place for the future where Microsoft can’t even get there operating system out.
LOL, what a jerk. Why doest he just add that Steve jobs smells as well whilst he is at it, as that is the level of his diatribe …. hatemail, eviltext, naughty toungue …
Well, I’ve just sent this to Mr. Glover – let’s see what comes back…
Tony,
For a publication that is effectively advising its readers on the state of the business world – and implicitly probably guides some investment decisions – your article, above, has at least one major discrepancy and also has a major question mark in terms of the interpretation of those facts.
Firstly, the sales figures that you quote (860,000 iPods and 876,000 Macintosh CPUs) bear no resemblance to the figures announced by Apple Computer on 11 October 2005: instead, and for reasons passing understanding, you appear to have picked up the figures that were announced back on 14th July 2004 and refer to the sales for the third quarter of the 2004 financial year (April-June 2004).
The figures you meant to quote were 6,451,000 iPods and 1,236,000 Macintosh CPUs.
Secondly, and taking the two quarters as examples, Apple quite simply maintains a healthy equilibrium between what I like to refer to as the Consumer Electronics division and the Computer division: in Q3/04, Apple generated 62% of revenue from CPU sales and approximately 16% from iPod sales and other “music-related” products, mainly iTMS (iTunes Music Store) sales. In the quarter that has just been reported, Apple generated approximately 43% from CPU sales and 40% from iPod and other “music-related” products. Given that Apple has to sell seven iPods to generate the same revenue as one Macintosh CPU sale, Apple would have to sell some 12 million iPod units in the current quarter in order for iPod to be considered the dominant part of the company.
Of course, it is wholly possible that Apple will achieve the sale of 12 million iPods in the current quarter – but then a) it is the holiday quarter, encompassing both Thanksgiving and Christmas, b) Apple has often sold twice as many iPods in the holiday quarter as the previous quarter, and c) Apple is relatively likely to sell 1.3-1.45 million CPUs this quarter given that i) they have just announced a major revision to the iMac range of home computers and ii) they are likely to announce a major revision to their professional line as soon as this Wednesday.
Anybody who looks at the pace of technological innovation at Apple and believes that their ambitions end at the iPod as we currently know it obviously has no knowledge of what drives the company and their mercurial CEO: Complacently relying on iPod’s market share simply isn’t in the company’s nature, nor will be a reliance that cumulative iPod sales will double every six-twelve months – so the one thing you can predict is that Apple will introduce another paradigm-shifting device or service, and that it will happen when you least expect it.
And the nuts continue to crawl out of the woodwork. These guys can’t stand to see a successful Apple, especially while thier beloved Microsoft stumbles around like a drunken whore.
What does portable gaming have to do with computers? Absolutely zero. Do my PSP, DS, and Gameboy games play on a PC or Mac? Nope.
Yes, games do not come to a Mac but that has nothing to do with the portable iPod, which works almost as well with a PC as with a Mac.
Dumb. Trash.
Let’s just rewrite one paragraph to make it more balanced:
“Video is a market where Steve Jobs already faces serious (well, not really) competition, not least from his old nemesis Microsoft founder Bill Gates. Microsoft software already powers a portable video and music player, the Zen Vision. Zen has been shipping since last November video-enabled players (that are unlike the iPod, much larger and don’t fit in a pocket but) with much bigger colour screens than the new video iPod and holding up to (a much smaller capacity of) 85 hours of video, (and a much smaller capacity of) 9,000 songs (at a cost much greater than the iPod). Last year, Samsung launched a similar device running Microsoft software, the oddly named Samsung Yepp YH-999 Portable Media Center. (Those companies refuse to release product sales numbers, so it is believed that sales are very low.)”
Now that’s better…
This is just embarrassing. How can this guy even show his face after an article that is so freakin sophomoric and just out right wrong?
Glover chews rubbers!
If Glover could read human beings at all he would have noticed that Steve Jobs was as relaxed, humourous, confident and on form as we have EVER seen him.
The man Glover must see things differently to me.
Steve Jobs above on Ballmers’ I love this company… You forgot the bit about:
“WHO SED SIDDDOWNNN??? (SQUEEK WHEEZE PUFF PANT…) “
Wow, this guy can’t even build an sentence properly… he says “Apple has been able to report its best ever financial results with its flagship new product, the iPod portable music player, selling 28m units and capturing a whopping 75% of the digital music player market,” which implies that they sold 28 million iPods in the quarter the report was based upon.
“75% marketshare goes to the iPod and Apple computer not Microsoft”
Nice try John. Marketshare is important, unless you don’t have any. Macs are still limping along in the single digits. Please do not try to fool those of us who dote on every word of IpodDailyNews
And in related news:
Free ethanol asparagus lampshade door pillow. Rye spaniard orchid trailer marshmellow.
“Firms like Microsoft and Toshiba are retailing devices similar to the iPod range in almost every way”
In every way except design, usability and compatibility.
Relax, folks – it’s just one small article that will be drowned out in the stampede of people buying iPods and iPod nanos.
Glover is BRITISH! That should explain everything.
Sorry, FrontRowUser, didn’t even look at the links as I scanned the article at lunch. My first thought was that the “tech editor” had a lot of nerve criticising Steve Jobs for saying “cool” too many times in light of Steve Ballmer’s escapades on stage.
It is very interesting and entertaining to know that if you google “monkey dance”, you get Steve Ballmer.
I don’t think you can get more “embarrassingly hip” than Ballmer did in that video.
Michael
KenC:
Like Jonathan Ive, that Limey bastard who does all the non-electronic design work for Apple.
We should run him out of town on a rail…
I love the way you reject the guy’s article, not because he didn’t bother check his facts, but because he’s a Brit (not that you can prove that he is simply by an e-mail address or his employment: he could be Irish, American, Canadian, Australian…), and nobody on your side of the water says a thing.
But woe betide anyone on this site who dares to pass a comment about America or Americans – no matter how well founded – because then we’re just jealous, or anti-American, or terrorist sympathisers. Talk about hypocrisy…
Hey KenC – Jonathan Ives is also BRITISH (as am I)! – What are you saying??
Hey KenC, shouldn’t you be starting a War somewhere?
Bloody thick Yanks.