The Motley Fool’s Lomax: Apple news ‘mostly underwhelming, with some potential future bright spots’

“The Apple rumor mill has been hard at work lately, with plenty of folks prognosticating about what exactly Steve Jobs would announce today in the company’s ‘It’s Showtime’ event. I found the actual announcements mostly underwhelming, with some potential bright spots on the horizon,” Alyce Lomax writes for The Motley Fool.

“First off, there’s a whole slew of new iPods at new price points, with increased storage capacity. For example, the newest high-end iPod will have 80 gigabytes of memory for $349. New iPod-ready video games like Tetris, Pac-Man, and Bejeweled, available through iTunes, are kind of nice, but certainly nothing earth-shattering,” Lomax writes.

Lomax writes, “While Apple did make good on digital movie downloads, it hasn’t gone the whole nine yards. Its first offerings are only from Disney (NYSE: DIS) and subsidiaries Pixar, Touchstone, and Miramax — a no-brainer considering Jobs’ Disney connection. The iTunes offerings also address one of the major hurdles in digital film downloading: price. New releases will sell for $12.99 when preordered or purchased in the week following the release of the digital and DVD versions, and $14.99 thereafter. (Older titles will sell for $9.99.) Those prices seem more reasonable than the fees charged by other nascent digital movie offerings like CinemaNow and Movielink.”

“Jobs previewed iTV, a device that will allow people to wirelessly view movies and TV shows they’ve downloaded to their Macs and PCs on their TVs. That device, expected to retail for $299, is probably the most exciting part of the announcement, but alas, iTV won’t be available until the first quarter of 2007. Meanwhile, one of the longest running Apple iPod rumors of all time — the mythical cell phone/iPod hybrid — remained a no-show,” Lomax writes. “Apple needed to impress today, and I’m not quite sure it did.”

Full article here.

Related articles:
Analyst: Apple ‘s iTunes+iPod+iTV model ‘the gold standard for the digital home of the future’ – September 12, 2006
Analyst: Apple ‘s iTunes+iPod+iTV ‘will be hard for other players to match’ – September 12, 2006
Apple gives sneak peek of ‘iTV’ set-top box to debut Q1 2007 (with images) – September 12, 2006
Apple posts new iPod nano ad online – September 12, 2006
Apple’s QuickTime stream of Steve Jobs special event now live – September 12, 2006
Apple’s iTunes 7 installer shows ‘iTunes Phone Driver’ as greyed-out option – September 12, 2006
NFL and Apple team up to offer 2006 NFL game highlights via iTunes Store – September 12, 2006
Apple debuts iTunes 7 – September 12, 2006
Apple debuts new iPod in 30GB and 80GB with Hollywood movies, games and new lower price – September 12, 2006
Apple unveils new iPod shuffle: world’s smallest digital music player – September 12, 2006
Apple intros new iPod nano with new aluminum design in five colors and 24-hour battery life – September 12, 2006

47 Comments

  1. I can’t wait to see the numbers for Q4 Macbook, Macbook Pro, and the just announced iPod product line.

    Year over year numbers are going to amaze everyone. I’m sure that AAPL has forseen the growth, and has long ago planned their “end game” strategy…. checkmate.

  2. Underwhelming when compared to the crazy rumors that spread before these events. But look at what was announce. Each item will be a winner. I’m sure the iPhone deserves (and will have) its own special event, when Apple is ready.

    Compare this to Apple “competition.”

    Sandisk – Where’s the 8GB player announce a month ago? Your web site STILL says “pre-order now.”

    Zune – Is that device actually going to be released?

    Amazon Unbox – I’ll bet Apple sold more movies in the first six hours than Amazon sold all week.

    Apple delivers.

  3. Why is it that “At the very least the world needed to see a truly new iPod device”? Why is
    “Apple under some pressure to come up with new and expanded iPod products”?

    All Apple needs to do is 1) earn more revenue and profit this quarter than last (or last year’s quarter), 2) point to a future that is better than its competitors, and more profitable than Apple is today. The world does not need to see a truly new iPod device, or expanded iPod products for these two goals to be met.

    And since Apple did deliver a new set of new design iPod nanos, a new iPod shuffle design, and reduced price iPods (per capacity) across the board, odds are sales will rise again. Only us who frequent Apple rumor sites even know about widescreen-touch screen iPod designs, and get disappointed. The mainstream, the other 100s of millions of people, who have yet to buy an iPod just need to get another reason to do so. Besides new smaller designs and lowered prices, Apple offered them two: games and movies.

    And for the financial analysts, Apple certainly re-emphasized two directions: the living room, and other stuff on the iPod (games). What has the competition done lately? Origami? Media Center? PlaysforSure? MSN Music Store? Zune? Zen Vision:M? Sansa? Sony anything?

    And once the idea of games catches on, then adding comm (wifi, cell, wimax, etc) becomes even more interesting. My son has a DS, and he finds the best part is playing with or against others over the wifi connection. Games, even more so than music, are definitely a community thing. Like Origami and MCE, the Zune feature set will be misaligned with what people want at the price MS wants to sell it to them.

    Apple keeps zigging when everyone is zagging. The competition moves to white and black, so Apple goes back to colors… They are even playing the fashion thing perfectly.

    Prediction: Apple will sell over 15 million iPods during the Christmas quarter. The $79 iPod shuffle will play a big role in this.

  4. The blame-Apple-first-crowd wants Steve Jobs to get up and give us a sales job like Mr. Haney. Trust me, after listening to Mr. Haney’s manure show after show, I appreciate things that really work and are really real.

    One curly tail up for Mr. Jobs (I ain’t got a thumb)!

  5. These announcements are soooooooo exciting.

    Some time in 2007 Apple will launch a “Media Center Extender” type product of the kind that’s been available in the PC world for years, iTunes now has some of the features first shown in Windows Media Player, and the iPods have been updated about as little as you could update an iPod and still claim with a straight face that you’d actually done something.

    I wonder if Apple will sell 14 million iPods this Christmas on the back of this?

    Underwhelming indeed.

  6. Poor Apple. Their audience is so used to being blown away by their new products that it’s getting harder and harder to impress them.

    The new iPod nano should fly off the shelves. It combines everything that’s great about the nano with all the style that people loved about the mini!

    And iTunes 7 is awesome!

    I’d be disappointed, but of the rumored products…

    — The widescreen iPod with the virtual scrollwheel is something I’ve always believed to be a fantasy of ThinkStupid. I’ve never believed this thing exists. If I’m wrong, I’ll apologize to ThinkStupid in this forum and stop calling them that. But Apple had better do a good job of selling an iPod that you control by smearing your finger across the viewing area.
    — The iPhone I could care less about, and also seems to be third-party vaporware, in this case via analysts who seem to believe they can wish it into existence. In any case I, and 80-90% of all cellular customers won’t get one. We like our cellphones cheap from our service providers.
    — The set top box? Well, they previewed it. It would have been nice to have it for sale, as is usually, but at least it’s coming.

  7. obviosly Apple had hoped to get more than Disney on board before toady. Sadly no in the cards. Apple share some blame in the disappoinment in my opinion- they certainly build things up prior to a special “event,” even playing off 64 bit iMacs as a speed bump the week before. . .

    Oh well. I hope the stock tanks tommorow- so I can buy more. Methinks the mac is going to explode onto the scene this holiday season- when all the kids/ college students who DIDN”T get a macbook this fall want one b/c they toyed with their buddy’s.

  8. Excitment, Apple’s in no rush. Why rush out products when there’s no real competition? Apple has 88% of the US music download market and is #1 in every one of its 21 countries, and obviously #1 in the US video download market. Apple has 75% of mp3 players in US. Why not use the extra time to just make the next product works for sure, and work even better?

    Yes, Apple would’ve liked the iTV to be ready before Christmas. But with regard to iPods, I just can’t see rushing product to market since one mistake (one crummy non-working product) in the consumer space can really hurt the brand, and putting more cutting edge high cost technology into the product reduces the profit margin.

    So yes, put in just enough to keep it interesting and keep it flying off the shelves. Find me a mainstream market that does more than just enough in every release. Not cars. Not TVs. Not PDAs or cell phones. Not even computers.

    No matter, I repeat, Apple will sell more than 15 million iPods/nanos/shuffles in the Oct-Dec quarter – even with one week less than last year’s quarter – assuming that Apple can make them that fast.

  9. Another case of unsubstantiated expectations has turned into trashing Apple, albeit in a very subtle manner.

    Totally agree with the post above that says this idiot is either on the payroll to be “underwhelmed” or is just an utter and complete fool, and not in the positive sense.

  10. Without companies like Apple continually innovating and pushing technologu and usability forward society and the human race would still be using abacuses and horse and carts.

    Apple is the Da Vinci of the the modern age.

    And if leonardo Da Vinci was alive today, guess which computer he would be using… A MAC!

  11. What do they expect?
    We got 2 virtually new products and a significant upgrade to a third.
    We got an upgrade to an already dominant piece of software, an upgrade which should consolidate and even extend its lead.
    We got the addition of movie downloads at a reasonable price in relation to the competition but done in a decent way, in a way that extends the pinoeering and dominant tv downloads business.
    We got an upgrade to the quality of said downloads.
    We got notification that 450,000 little dongles you stick in your shoe have been sold. This would be massive news for any other digital player company in itself.
    We also got the announcement of a product which if it is even half as popular as the iPod, will no doubt to go on and dominate the living room arena and which will only improve with subsequent versions and integration.

    Not everything has to be new to be revolutionary. There’s nothing wrong with consolidation and evolution, we evolved and we’re arguably great.

  12. The fullscreen iPod IS coming, right? Because the announcement made by Jobs wasn’t very exciting. I actuall skipped through a good portion of the video…

    I guess it’s just that everyone already knew everything that was announced except for the Shuffle – and no one WANTED to know about that.

    Fullscreen iPod and iTV soon, PLEASE!

  13. the only reason it was ‘underwhelming’ is that the nattering nabobs of negativism were expecting either a touchscreen ipod or some sort of iphone, neither of which appeared.

    rather, jobs introduced a whole slew of updates that keep a category killer a category killer. plus, itunes 7 is pretty damn cool. and, oh by the way, the movie thing will rule. apple’s been pushing hd for years. i’m sure they’ll figure out a way to get high-res movies onto your tv or ipod soon enough. this is only the beginning.

    i’m now going to exit the patented steve jobs ‘reality distortion field…’

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.