Three markets that are different today after Apple’s ‘It’s Showtime’ event

Apple’s “It’s Showtime” event “announcements yesterday will have ripple effects into other parts of the industry,” Carl Howe, principal analyst, writes for Blackfriars’ Marketing.

The new iPod pricing just cut off Microsoft’s Zune at the knees: Microsoft’s first Zune device is a rebranded Toshiba Gigabeat, which was planned to launch at $299. But with the dominant market share video iPod now starting at $249, that price is a non-starter. And since Microsoft is not the leader but the challenger in this market, Zune will have be be priced less than Apple’s offering to get any traction. Microsoft’s Robbie Bach is probably spending this week throwing darts at Steve Jobs’ photo, since he just added several million dollars of red ink to Robbie’s launch plans.

Apple’s iTV pricing also whacked TiVO’s Series3 video recorder: With Apple’s iTV planning to launch at $299 and offering many (not all) of the same features of TiVO, suddenly, the decision to stick with TiVO may be a lot tougher to make. And at the very least, Apple’s pre-announcement will put a chill on the DVR market over the Christmas selling season and hurt TiVO’s pipeline of customers.

Apple’s iTV isn’t Apple’s final living room play: iTV really exists just to support “legacy TVs” — that is, ones you already own. But the components that fit so nicely into a Mac mini case fit just as well inside an LCD display (as demonstrated by the 24-inch iMac announced last week) or a plasma TV — better in fact, since it wouldn’t require all the myriad connectors on the iTV. The fact that Apple didn’t fire a shot across the bow of TV makers like Sony and Matsushita yesterday doesn’t mean that it only intends to be a set-top box maker.

Full article here.
It’s so nice to read these articles when they’re written by someone who gets it.

Related articles:
Cramer: Apple’s ‘iTV’ all about ease-of-use; Apple shares are going higher – September 13, 2006
Apple + Living Room = Logical Marriage + Boon for Stockholders – September 13, 2006
The Register: Apple event more like ‘No Show’ than ‘Showtime’ – September 13, 2006
The Telegraph: Steve Jobs’ genius making people desire gadgets for which they have absolutely no use – September 13, 2006
The Guardian: Steve Jobs needs ‘a charisma download, Apple risks being left behind’ – September 13, 2006
Mark Cuban: Things that are special about Apple’s announcements – September 13, 2006
Apple’s ‘iTV’ strategy – September 13, 2006
How will Apple’s ‘iTV’ work? – September 13, 2006
The Observer’s iPod FUD: Apple iPod is ‘wilting away before our eyes’ – September 10, 2006
Apple eyes living room market with device codenamed ‘iTV’ – September 12, 2006
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’s QuickTime stream of Steve Jobs special event now live – September 12, 2006
NFL and Apple team up to offer 2006 NFL game highlights via iTunes Store – September 12, 2006


  1. FWIW, About two years ago, Apple was going to enter into a cross-promotional marketing deal with Tivo much like they have with Nike and Disney. Stacks of Tivo boxes were delivered to all of the Apple Retail Stores and were about to be placed on the shelves when the announcement was cancelled, the deal was reneged, and the tivo’s returned.

    I’d sure love to hear what was behind that story.

  2. I love apple as much as the next guy, but the “iTV” is not going to include nearly any of the same tech as a DVR like TiVO. These might be added later but as far as we know the “iTV” doesn’t have a hard drive, and it can’t stream television content back to your mac. I think that these two products serve very different functions. That being said, I would LOVE to see apple work DVR capability into the “iTV”, but I think it is at least a year out.

  3. “Stacks of Tivo boxes were delivered to all of the Apple Retail Stores and were about to be placed on the shelves when the announcement was cancelled, the deal was reneged, and the tivo’s returned.”

    I also recall that event. It was very odd.

    At the moment iTV* isn’t a direct threat to Tivo sicne its really NOT a DVR, but give it time. Just the fact that Apple is going this far into the media – TV link should be an indicator that they will no doubt want to extend its functionality at some point.

    MW former

  4. Maybe now that Apple looks to be entering the set top box game, that people will actually be able to use their remotes without having to switch between 5 remotes and play that excruciating button rpessing scheme to get all the devices to work.

    Nothing worse than going to someone else’s house and trying to figure out the magic combination to operating their TV system.

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