Analyst: iPod video tear-down suggests high Apple margins, future ‘true iPod Video’

“A tear-down of Apple Computer’s newly refreshed video iPod reveals potentially high margins for the company and confirms that both PortalPlayer and Broadcom have retained their respective sockets inside the device,” Katie Marsal reports for AppleInsider.

Marsal reports, Craig Berger, an analyst at Wedbush Morgan Securities who covers PortalPlayer, had predicted that the iPod chip maker would retain its slot in the device and ripped one open just to be sure. ‘We do see both the PortalPlayer MP3 processor and the Broadcom video processor chip inside this device, consistent with our prior expectations that this device would remain a discreet two-chip solution for the time being,’ he told clients in a research note on Thursday.”

Marsal reports, “Berger said Apple made very few hardware changes over its fifth-generation iPod with video playback, but did update the player’s power management chips. ‘The lack of hardware changes implies that this device is a short-term, stop-gap device intended to buy Apple more time until it is ready to launch its true iPod Video later this year or early next year,’ he said.”

Full article with graphics and photos here.

Related article:
Apple debuts new iPod in 30GB and 80GB with Hollywood movies, games and new lower price – September 12, 2006

23 Comments

  1. Michael Gartenberg at http://www.JupiterResearch.com, who I believe is NDAed with Apple, says this on 9/13:

    “Well, we heard from Apple earlier this week (but don’t think that’s the last word. Last year Apple followed up the Nano announcement with the 5G iPods just a few weeks later)”

    and this on 9/12:

    “Also, it’s still early in terms of holiday announcements, we might yet hear another one or two things from Cupertino before the first frost hits in the East.”

    Odds are the 6G widescreen touch-screen iPod is a-coming soon… And it could be priced at $299 or $399 …

    Maybe on the iPod’s 5th anniversary on Oct 23 (though it’s a monday)? It would be a perfect time to announce how movie sales have done.

  2. The lack of hardware changes implies that this device is a short-term, stop-gap device intended to buy Apple more time until it is ready to launch its true iPod Video later this year or early next year,

    could someone offer an explanation for the logic behind this claim.

  3. Oh, yeah, one more thing about a new iPod on Oct 23rd:

    Apple introed 640×480 but to really make use of it, you’ll have to wait for the iTV next year, since the 5G iPod still uses 320×240. Sound like a gap?

    Well, the 6G iPod will use 640x 480 won’t it?…

  4. “could someone offer an explanation for the logic behind this claim.”

    There is no logic behind that claim.

    Apple should’ve given the 5G’s screen a slight increase and turned it on its side for the widescreen effect. That’s all Microsoft did. Call it the 5.5G. Then release the touchscreen 6G early next year when the movie store gains some traction and hopefully other studios are signing on.

    Zune may be a piece of shit but I’d sure as hell rather watch movies on that screen than the iPod’s. Apple’s lucky I’m a nano man.

  5. “could someone offer an explanation for the logic behind this claim.”

    Apple has had about 11 months to improve upon the 5G iPod, and this is all they could do? Just change some power management chips so as to get a few more hours?

    In other words, obviously, Apple is working on something else as Plan A, and these minor changes are a Plan B.

    So the question I have is will the widescreen device be a 6G iPod and replace the 5G iPod, or will it be an iTablet that is in addition to the 5G iPod with larger dimensions that is not as really pocketable?

    The PSP has a sharp 480×272 on a larger 4.5″ screen. Will Apple go larger since it has content at 640×480?

  6. “Zune may be a piece of shit but I’d sure as hell rather watch movies on that screen than the iPod’s. Apple’s lucky I’m a nano man.”

    ———-

    Uh, yes, they’re very luck you’re “a nano man”, because otherwise they’d no doubt be reaping the whirlwind.

    <<< Insert rolly eyes here >>>

Reader Feedback

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