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
Apple isn’t seeing out friends, is it?
I was just about to tip MDN, but saw it was just posted. Yes, these guys get it. Apple’s vision is unparalleled and their execution is superb.
How do you tip MDN? Is there an email to send article links to?
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.
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Wow, I hadn’t even really taken the Zune into consideration with the iPod price drop… Microsoft has to be in pain right about now. Not that they really could’ve expected much out of Zune anyway, but still.
Zune: almost like Xbox, but instead of losing 100% a unit, lose 120%.
Zune. Because math is hard, so fsck it.
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.
“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
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.
“I want a red tool box and an Apple DVR for X-Mas!!!! “
Just wait an see what is coming. You will ALL freak!!
Like Mr Me said “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.”
That’s exactly right. The iTV is really the Airport Express Video: content streams from your Mac to your TV. Maybe an external HD can be hooked up to it to add DVR functionality, but then you’re talking another $100+. It doesn’t have the processing power to run OSX, just Front Row. If that’s what you want, then get a Mini and hook it up to your HD flatscreen TV.
Even if MS lowers the Zune’s price to meet or beat the iPod, they’re going to have a herd time selling a product that’s twice as thick. It’s as brick.
oops
herd = hard
No one seems to be talking about Leopard and how it’s “secret” features will fit into this new direction for Apple.
Hint: PVR’s be very, very scared!
Yes, I’m sure iTV has TiVo shaking in their boots… NOT
Apple will NEVER do a PVR as long as they SELL television content for $1.99 at the iTunes Store. Forget about it.
iTV is an accessory for your TV *and* your Mac mini. Why do you think the form-factor is identical? It’s so you can stack them.
Just told the spouse that I want to get a new flat-screen TV next year, along with the “iTV” or whatever the name ends up being. We made our “big trip” this year…next year’s going to be all about cocooning…
Maybe the base product will be the $299, then expandable with components that fit on top; I believe it’s LaCie that already makes an external HD for the Mac mini that fits right on top (same basic footprint). For folks that want hard drives or DVD player, that’s just an additional component or two. So folks that maybe just bought a DVD player, or still have a bunch of VHS tapes (most of my spouse’s railroad tapes will never come out on DVD) won’t have to worry about getting something that they don’t need right away. (I’d like to find a decent VHS player that I can hook into the iMac and transfer his videos to DVD, along with one from our honeymoon down at Universal Studios Hollywood, but that’s another story for another day…)
Bill — that’s similar to the Chevy Nova down in South America…No Va being Spanish for “no go”…
Zune doesn’t have to worry — they’ve innovated by using white text on a black background!
Everybody will want that!
LOL
• 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.
This does make you wonder if Apple isn’t preparing a digital TV, that has the elements of iTV built into it, for next Christmas.
Think about it, they wouldn’t need the HDMI port, component video port, power supply, power cord or case, and the Apple Remote operates all features of the TV using virtual buttons and click wheel.
Hmm, partially agree with his points:
Zune: yup, it’s going to be difficult for this product to penetrate the market, unless it has something very compelling. We’ll see what today’s “official announcement” brings.
TiVo: disagree. Right now the iTV and TiVo series 3 are playing in two different spaces entirely. For one thing, as mentioned, the iTV isn’t a DVR (which is essentially what the TiVo is), and the TiVo can’t stream anything. Feels like he just wants to compare two sexy products.
Granted, as someone said previously it has the Mini form factor, so you can create a DVR with a Mac Mini and a big hard drive. That takes the price to somewhere around the TiVo range, though (around $700+). My opinion might change as we get more details about the iTV.
Apple TV: hmm, feels like this will stretch Apple too thin. It’s one thing to make iPods and convince the masses to buy them (at most $350, if not lower), another to convince them to buy TVs ($$$). Then again, Steve Jobs can sell anything. We’ll see.
All this downloadable movie nonsense has people saying pretty stupid things.
Has anyone noticed that HD is the future? 640×480 that needs to be streamed from an external computer? No Firewire? No iPod dock?
Movies that take hours to download, have no extras, aren’t anamorphic, are lower-resolution than DVD (and don’t give me that “near DVD quality” crap. 640×480 is VHS resolution), can’t be burned to a DVD, DTS audio is not an option, etc, etc.
What the hell is wrong with people? This much-lesser product is nearly the same price as a DVD!!!!!!!
Suckers are being born at a rate much faster than one per minute.
Maybe OS X 10.5 will include BitTorrent-like P2P technology that makes downloading HD movies actually possible at acceptably fast speeds. Alongside the rollout of Leopard will be the introduction of true HD content to the iTunes Store.
Or even if that P2P stuff doesn’t become part of the deal, it still seems likely that Apple is holding off on some new technologies until they’ve got their toes in the water. Apple always starts off slow. Right NOW it’s 640X480, but once that starts to kick off, Apple can dive in for real. Plus, as I said above, by then we consumers might have some really cool new Apple technology at our disposal to make the process that much more acceptable.
Let’s be patient!
Of course you can add tivo functionality to your computer (PC or Mac) and just stream it to the iTv.
Much easier on Windows right now (media center + tv cards are cheaper and more ubiquitous) but elGato has a nice setup. I think you might see some DVR + DVD ripping technology coming in leopard though. Yeah, that’s right, I said DVD ripping. iTunes began with CD ripping what’s the big deal?
And can you stream HiDef video? ‘Cause you know the codec can handle it.
iTv is nothing more than a Media Center extender, it is just the Apple version, which means it should revolutionize the space in short order. The pre-announce of iTv was to force the other studios to come along.
Can I buy movies from my iTv?