Enderle: Apple’s iPod looks like obsolete technology at this point

“Apple’s latest batch of iPod announcements was fairly well received, save for a few corners grumbling that the event was lacking in any big news, other than an energetic albeit thin Steve Jobs on stage,” Andy Patrizio reports for InternetNews.

“The challenge for Apple is starting to become what else to do with a music player now approaching its ninth birthday. There are only so many ways to skin a cat and despite a few nifty new features like shake to shuffle, in the end, it’s just a music player,” Patrizio reports.

“‘The iPhone clearly is overshadowing the entire iPod line,’ said analyst Rob Enderle, of The Enderle Group (Enderle is a consultant for Dell, which is reported to be working on an iPod competitor),” Patrizio reports.

MacDailyNews Take: Enderle would actually be right if he added “iPod touch” along with iPhone.

Patrizio continues, “‘Apple has clearly signaled that their focus is on the iPhone and the iPod looks like obsolete technology at this point. It’s hard for people to get excited about the iPod because the best iPod is a stripped down iPhone,’ said Enderle.”

MacDailyNews Take: People who are in the market for the world’s best digital media player are definitely excited about the iPod touch and also seem to really like the new iPod nanos from what we’re hearing and reading.

Patrizio continues, “But there’s no way Apple will get 160 million unit sales from the iPhone, like it has enjoyed with the iPod, since Apple can’t control the mobile phone ecosystem like they can with the iPod, Enderle argues.”

MacDailyNews Take: iCal’ed. The mobile phone market is so much larger than the digital media player market that Enderle will eat those words. It’ll take a few years, but iPhone will sell more than 160 million units.

Patrizio’s full article, which seems to have been dictated to him by know-nothing Enderle, including a bunch of gobbledygook about iTunes needing subscriptions (because that seems to be what Enderle is pushing on the Dell dopes who hired him to “consult”), here.

70 Comments

  1. “But there’s no way Apple will get 160 million unit sales from the iPhone, like it has enjoyed with the iPod, since Apple can’t control the mobile phone ecosystem like they can with the iPod, Enderle argues.”

    Save that quote! We can all send Enderle email when he is proven wrong. Given the size of the phone market, and well the iPhone is selling, it won’t take long….

  2. You know, they are right. After all, music is thousands of years old, so we must be getting ready to stop listening to it. So who will need a music player??? Especially if they are small, convienint and last a long time.

    Yep, stop the presses, tell everyone that they can stop chasing iTunes and iPod cause music is dead and so is listening to it. LOL

    ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Just a thought.
    en

  3. Boy, Enderle is a twit…even simple facts he screws up! The iPod was introduced in October 2001…last time I checked, that means it would be turning 7, not 9…unless he plans to recycle this column in 2010.

    I guess he’s pathetically trying to position the iPod as “old” technology to be supplanted by his tasty Dell offering…sheesh

  4. My first thought upon seeing the headline – “WTF is he talking about???” Now I realize that, yet again, he doesn’t even know.

    And 9th birthday??? 2001 was only seven years ago (as shown by all the commemorations tomorrow) and the iPod came out that fall.

  5. If we could only harness the abundant natural resource that is all the gas coming out of these ‘consultants’, we could easily save the planet and end the energy crisis.

    iPod has been out for about seven years; iPhone – just one. It is expected that iPhone will have sold 40 million after two years.

    Even if the sales weren’t growing, iPhone would hit the same mark after about 7 years.

    Now, if we strip out the first year of iPhone sales (6 million) and look only at 3G, the numbers seem even more promising: in about four years, we should exceed Mr. Enderle’s “unatainable” number.

    I’m sure Mr. Enderle said this on purpose, even though he knows it ain’t true. Nobody is actually that stupid. Or not?

  6. Patrizio needs to get some perspective and rely on other sources then just Enderle. Shows just how lazy news reporting has become. Person X wrote something on the topic assigned to me, so, let’s see how much I can quote it and little actual thought, research and little creativity I can muster.

  7. “Apple has clearly signaled that their focus is on the iPhone and the iPod looks like obsolete technology at this point”

    Crikey: compared to what exactly? Compared to 99% of the competition, iPod still kicks a@@.

    These morons really need to draw a distinction between the “$200 iPhone” and the “$149 iPod”. The iPod does not cost $80+/month to own for 2 years. There is no way anyone will pay $80/month just ’cause they want a “cooler iPod”. iPhone is NOT cannibilizing iPod. This is an absurd fallacy.

    “The touch isn’t cheap enough to stop people from buying the cheaper iPhone”… well, no, the iPhone really costs well over $1500 over 2 years… unless consumers are utterly r-word’ed, they know better than the “analysts”.

  8. Apple doesn’t *need* to sell 160 million iPhones to equal the success of the iPod because, well, it makes a lot more money on each iPhone. That doesn’t mean it won’t sell at that level. With a billion or so cell phones sold every year, getting just a few percent of those will allow Apple to reach that target in less time than it took iPod.

  9. Enderle is a tool. And his commentary is so consistently transparent in its aims, it’s a true wonder anyone gives him any kind of credibility anymore. I think it’s the fact that people still do that actually bothers me more than anything. He’s the Pete Hammond of tech criticism — utterly predictable and therefore completely pointless to listen to. (If you’re unsure what I mean, google “Pete Hammond” and “quote whore”.)

  10. Is Dell still sending all their tech support to India?
    Did Enderle consult on that great idea too?
    While the Iphone and iphone touch interface are by far the most forward thinking new technology, there is still a huge demand for a industry leading product to provide superior music storage and playback for those who dont desire to use the features offered on the iphone/iphone touch. If Enderle would have consulted with anyone in-the-know he would have bought plenty of Apple stock years ago.

  11. Enderle is right–the straight iPod is going to disappear completely in the next 18 months. Already, it seems bizarre to me to spend money on one of these devices that *doesn’t* have wifi. In 18 months, all iPods will have wifi, and will probably all be of the “touch” variety.

  12. Remember the patent Apple applied for (or got) for touch screen plastic displays? That is what they are waiting for. The nano will go all touch when they can get it to be as cheap as the Nano is now. I’d assume that the costs of adding a touch display and the weight and size is what is keeping it from happening. When they get the plastic thing happening, they will get rid of the wheel and make it all touch.

    The one thing I think they are really missing is a Touch with a hard drive. Classic is fine and all, but a Touch with a 160gig hard drive would be rather cool.

  13. Given the fact that most of the people (i.e. idiots) that get press coverage these days are what my mother called “troublemakers”, and want to create nothing but controversey and consternation, I think it’s time Enderle and people like him get what they deserve: nothing.

    No press coverage; no attention; no nothing.

    He’s worthless, and contributes nothing positive to his readers (sheep).

    Most importantly, he contributes nothing of value to the industry.

    Fsck him.

  14. The radio is somewhat obsolete technology but millions are sold every year.
    The secret to stellar sales is to make punters buy the next gen model time after time. How many iPod owners own not one but a drawer full of them – and a youch or phone ?

  15. What’s wrong with milking a cash cow, especially when one has new products on the rise to eventually replace it? This is Marketing 101, brilliantly executed by Apple.

    I can’t wait to see what “innovations” Dell brings forth to back Enderle’s words that the ipod is obsolete.

    Finally, if one less iPod means one more iPhone, that’s a deal I’d take any day.

  16. It’s pretty obvious astroturfing.

    “What if MacDailyNews and other Mac sites stopped republishing his articles?”

    Keep your friends close, and your enemies closer.
    – Sun-tzu, Chinese general & military strategist (~400 BC)

  17. I would say the signs are already there for a product transistion.

    The iPod Touch is the replacement for the classic. The classic is now down to 1 model. By Jan or Jun next year it will probably be discounted assuming a 64-128 GB flash based iPod is cheap enough.

    The changes to the Nano are interesting. Making the screen in portrait mode is comparable to the touch. The accelerometer and other features suggest the direction Apple are going. Next up would be a touch screen nano in a year or so.

    I think this will lead the way to a nano phone. Remember Apple made a huge leap in market share with the mini / nano. The same will happen with the iPhone if they offer a smaller and cheaper version. Not everyone can afford a luxury purchase like the iPhone, but would go for something that is less than $100 after subsidies.

  18. I have one of the “old” itouches and I love it. I’d love for it to have the remaining iphone features (constant internet access instead of wifi; gps) but I’m very glad I don’t have to pay AT&T;each month.

    Also, here in NYC where I live, AT&T;service seems inferior to Verizon.

    If I could get iphone on Verizon, I’d buy one. But for now I’m perfectly happy with my touch and thankful that the revamped itouch doesn’t seem too far ahead of my $400 itouch.

  19. Remember Folks

    What the Enderle’s of the World will maybe never understand

    Apple does not do:

    Bigger is Better cause it’s New and Improved with tiny scrubbing bubbles and the larger Tail Fins provide stylistic enhancements all the Homekeepers in YOUR Neighborhood will demand this Season

    For just 10% down, low monthly payments, 90 days same as cash

    Yes, YOU can have the worthless crap of Tomorrow, Today

    BC

  20. …only problem is, I like my antiquated technology since it fits seemlessly with my antiquated music server and ubiquitously fits almost every device ever made for it….

    The other problem is that no one seems to be able to compete in this space.

    rickw.

  21. The iPod touch is the second or third couch computer in every household on the planet.
    I take it to the john, outside, to work, on vacation,
    and even the grocery store. For what I need, it is much better than a laptop. It does need disk image support, but there are ways around it.
    I refuse to pay a huge cell phone subscription and will stick with a cheapie flip for occasional calls, but I whip out my iPod touch everywhere, even n in church for my bible(the text is huge and multilingual for my Chinese wife. This thinkg is much more convenient than a laptop and people are realizing it now that there are so many cool apps. GPS, edit and save documents, disk image, cut and paste and landscape keyboard and this thing will cannabalize Macbook sales. Apple knows it and is keeping it lean on purpose.
    Enderle is yet again WRONG!

  22. Well, I have an iPhone 1st gen, an iPod 3rd gen, an iPod nano 1st gen, an iPod Photo, an iPod Touch 1st gen, an iPod Shuffle first gen, and never the less I am in the market for an iPod classic.

    Why? Enderle will not explain, that is for sure.

  23. anthony007 – I think he means he put a reminder in his iCal software to recall the day Enderle was quoted driveling about Apple not being able to sell 160 million iPhones… that way MDN can remind its readers – once again – what a Ballmer-Arse-End-erle this “consultant” is.

  24. So tell me, does the iPod cost 100 bucks per month? Does Apple get constant payments from people that purchased iPods? Now doesn’t the iPhone do all the things that iPod does?

    So you tell me… Does Apple need to sell 160 Million units to make just as much money? yeah I didn’t think so either.

    -Pi

  25. had to go in to the local Apple store today. you should have seen the speed they were selling touches at.

    even if he was right and the iPhone wouldn’t sell at those numbers, the nano and touch will blow those numbers outta the water…..

  26. That is stupid. A lot of people do want “just” a music (media) player and a separate mobile phone. While I agree that the iPod classic is old technology that will get phased out soon, the new iPod nano is the near-perfect media player. Apple will sell tens of millions during the holidays. For those who want the “iPhone minus phone,” there’s the iPod touch.

  27. So Enderle thinks Apple’s iPod looks like obsolete technology.

    Compared to what?

    The only example he gives is the Apple iPhone.

    He clearly can’t be talking about the iPod Touch looking obsolete, so he must be talking about the Classic or the Nano.

    The Classic is clearly obsolete, since it’s 7+ year old technology. Apple has lost interest in this category, because they know that’s the past and not the way forward. Apple has kept 1 model to be manufactured in limited numbers for those that might want the storage. Microsoft hasn’t figured out this market is saturated and practically dead. (Dell will probably release a crappy player with a hard drive as well).

    That leaves the Nano. Is Enderle really trying to tell us the iPod Nano is not very exciting because it looks obsolete next to an iPhone?

    Well duh? He’s comparing a low end MP3 player to a high end smartphone.

    Is this guy really that insane?

    Oh wait, don’t bother answering that.

  28. So iPod technology is being replaced by what exactly? Why, look! It’s the iPod Touch! The iPod Touch is the flagship of all flagship products. Every iPod is bathed in the iPod Touch’s glow.

    Enderle proves yet again that he has chicken shit for brains.

  29. What kills me and other porkers is the fact Mr. Enderle and his

    “group” gets quoted in the media. There are many dozens of

    supposed analyts I believe are more qualified than he to speak of

    matters technology related. But…

    …can’t wait for the new Dell Zingy DJ Zuny thingy.

  30. The record speaks for itself. Enderle or underware as I call him is a total do-fuss! He’s the only promoter of Windows Vista which is a total failure proven by the fact that Microsoft is now working on Version 7 with no mention of Vista at all. He’s been 99.9% wrong about Apple since I can remember reading some of his FUD articles he puts out. iPods success also speaks for itself out pacing sales of all other products by light years.

    Rob, stick to Winblows, because you don’t have a clue about Apple’s business and how it’s eating up market share both in the consumer level and now business and industry too.

  31. I have the iPod classic (160GB) and an iPhone (EDGE, 8GB); I use the iPod a lot more than the iPhone. Reason — battery life; I can listen to it and not worry about killing the battery just when I need to make a phone call. I love the iPhone for the phone capabilities, and for checking things on the Internet when I’m away from home (especially bus schedules and email), but for straight media playing, especially music and podcasts, I’ll stick with my iPod. (Even thinking about getting a nano for workout purposes.)

  32. @Eric:
    Toasters are obsolete too but people buy an awful lot of them!!!

    Absolutely correct. What needs to be asked of these pinhead consultants are questions like:

    WHY AREN’T OUR TOASTERS NOW INTERNET-ENABLED?

    WHY ISN’T MY TOASTER BURNING MY TOAST WITH A LAZER BEAM?

    WHY IS MY TOASTER STILL THE SAME FORM FACTOR?

    WHY DOESN’T ANYONE OFFER A SUBSCRIPTION SERVICE FOR MY TOASTER?

    etc.

    Over the past 40+ years, the household toaster haven’t been burdened down with a hundred bells & whistles … like why is that, Oh “Mister Industry Expert?”

    And during that same time period, the domestic clock-radio alarm has had a few changes, but not that many. My current favorite is the ‘Automatic Daylight Savings’ feature of a few years ago, because with Congress changing the rules on it a few years ago, I now have to reset my clock 4x/year because there is no “disable feature” switch…a design befitting a Zune.

    -hh

  33. “Isn’t he the guy who said the mouse was a ‘toy’?”

    That was John Dvorak.

    “The Macintosh uses an experimental pointing device called a mouse. There is no evidence that people want to use these things.” – John Dvorak, (1984)

    What does foot taste like, John?

  34. “MacDailyNews Take: iCal’ed. The mobile phone market is so much larger than the digital media player market that Enderle will eat those words. It’ll take a few years, but iPhone will sell more than 160 million units.”

    Only true if the cost of data plans come down over time.

    There are really not that many people who want to pay $100/month for a phone plan.

    Unless, of course, it becomes possible to get an iPhone with a non-data phone plan and just use wifi for data. Then, they’d probably sell 160 million in a short time frame.

    It’s the costly data plan that is currently holding back adoption of the iPhone, especially for the poor folks living in Canada.

  35. “Toasters are obsolete too but people buy an awful lot of them!!!”

    Being old technology doesn’t automatically make a product obsolete. What does that is a newer or better way of achieving the same thing coming along,

    So What technology has superseded the toaster? Pop up toasters have definitely made the ones you had to watch yourself, or toasting forks for holding over the fire obsolete. But there’s currently no better mass market bread toasting mechanism available.

    “Over the past 40+ years, the household toaster haven’t been burdened down with a hundred bells & whistles”

    Maybe not 100, but highter end ones have digital countdown until popup timers, sensors for toast brownness (rather than simple timers), different times for first cycles, halogen bulbs instead of wire elements and so on. But the point is the toaster has little further room to go in improving the core job it does. The same can’t be said of portable media players and cellphones.

    Just as the smartphone made the standalone PDA obsolete, the music phone has made the standalone mp3 player obsolete.

    “My current favorite is the ‘Automatic Daylight Savings’ feature of a few years ago,”

    Buy a clock-radio that recieves NIST radio based time broadcasts to correct itself. Not only will you never have to set daylight savings time again, you will never have to set the time again. So even the humble clock radio is touched by much better technology.

Leave a Reply

Your email address will not be published. Required fields are marked *

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