Quickie, off-the-cuff reaction to today's iPod/iTunes announcements

It's been a long day, and I still have to head out to see some folks for dinner, so I won't have time for a long write-up until tomorrow at the earliest. But here are some early reactions to what Apple announced today.

Dominant. Apple controls 73.4 percent of the market for MP3 players in the United States, roughly equivalent to IE's Web browser share. Apple has sold over 160 million iPods since 2001. And customers have downloaded over 100 million iPhone apps from the App Store in just two months. (OK, most were free.)

Incremental. It's official, folks. The iPod market is now mature. There wasn't a single major announcement at today's event. Nothing. If you think that's bad, though, look at the Zune: They had Apple right where they wanted them (i.e. with nothing cool to announce) and couldn't even pull a new device out of its hat. Sigh.

"New" iPod nano. Or as I call it, the second-generation iPod mini. Or the second coming of the first generation nano. Or Apple's version of the flash-based Zune. Whatever you call it, one thing is clear: Last year's "fattie" iPod nano was clearly not the success they were looking for. Back to the drawing boards. Oh, I do like the colors though. And the accelerometer is interesting. Why isn't it in the classic?

"New" iPod touch. OK, they lowered the price. And they added back iPhone features like a speaker and external volume toggles that quite frankly should have been there in the first place. Do we salute Apple for that? No. No, we don't.

iPod classic. Now even more classic than last year. It wasn't changed at all beyond a new 120 GB hard drive option. Yawn.

iTunes 8. Now more like Windows Media Player than ever. This is the one I need to spend the most time with, but it looks very incremental. I like that HD content is now available on the iTunes Store. Are there new HD iPod profiles out there for QuickTime now?

NBC shows are back. I love this one, and it's another example of Apple being the bad guy. A year ago, NBC left iTunes because Apple wouldn't give them the variable pricing they wanted. Apple claimed (and its closest iCabal fanatics parroted) that NBC just wanted to sell TV shows for more than $1.99. But that wasn't true: They wanted to sell older shows for just 99 cents per episode. And longer, mini-series-type shows for $2.99. Now, in the words of the New York Times, "both sides now say they got what they wanted." Put another way, Apple caved to NBC's reasonable and customer-centric demands and NBC got what it wanted. Bravo.

iPhone software update 2.1. It wasn't cool when the original iPhone 2.0 software was so buggy it made us yearn for the days of Macintosh System 6. It was equally uncool when version 2.0.1 didn't fix any of the serious problems. And it was even more uncool when 2.0.2 didn't just not fix the biggest problems, but it introduced its own new problems. Now, Apple is claiming that iPhone 2.1 will solve the problems. I don't believe them. And I'd really like to know why my iPhone isn't updating to this new version right now.

Apple TV. What? Nothin'?

Steve Jobs' health. It's unfunny when you repeat a tired joke, Mr. Jobs, but we're glad you're OK. No, we really are.

Oh, and one more thing. There was no one more thing. And that stinks. Because these announcements don't amount to much more than a cheerleading session for continued dominance.

Off to dinner. More tomorrow...

Discuss this Article 121

bettieblu
on Sep 10, 2008
@chuckb84 you cant blame Apple for DRM. If anything they wanted to dump it before MS did. http://www.apple.com/hotnews/thoughtsonmusic/ In fact I think Jobs letter to the world prevoked the music companies that now award Amazon DRM music but not Apple. Which of course just hurts them because if Apple could sell it they would make more money with its in stall base.
Waethorn
on Sep 10, 2008
"Standards are a set of "rules" for completing a process or function. Usually agreed upon by a consortium. A standard, on the other hand is something that is accepted as the norm." Now you're starting to talk like pappy. Your definition of the plural contradicts the definition of the singular. http://encarta.msn.com/dictionary_/standard.html
tayme
on Sep 10, 2008
@Waethorn - "Your definition of the plural contradicts the definition of the singular." Which is exactly what you did above - "Standards aren't always what some governing body says it should be though. In the context of web standards, the real "standard" is that brought forth by Microsoft, since IE has the most marketshare and has been adopted worldwide in more businesses than you can shake your fist at!" --tayme
bettieblu
on Sep 10, 2008
@DRWAM they dont have to give up their work. The idea behind standards is simple. Lets just take word processing. If every word processor (current versions say with last 3 years) could open a document based on a standard then companies would compete for your money based on things like usability, speed, must have features etc. Right now if your word processor cant work with .doc files with 100% compatibility then you are at a disadvantage. A consumer might only need the features of free Open Office, or iWork at $69 but must spend $150 + for Office just to be compatible. With a standard document format, I could pick what I need to create a document, based on what I really needed. In my case I probably use about 30% of what Word can do and so I might opt for something else. On the other hand if Word had some really nice features that the others did not, I might spend more. Of if Word was really fast, etc. Office products are a cash cow for MS and so they will NEVER really want a real standard that forces them to compete on features and price alone. This is the "MS Lock" that makes people mad. You could go down the same path with Email. Exchange is a great product, but it uses proprietary protocols, forcing many to license its API's, like Active Sync. If there was an open standard the consumer would benefit more for sure.
Waethorn
on Sep 10, 2008
"A consumer might only need the features of free Open Office, or iWork at $69 but must spend $150 + for Office just to be compatible." Last time I looked, they sell Office Home & Student 2007 RETAIL at Staples for $100. That's the copy that's good for 3 PC's. That's ~$8.33 for Word/PC, if you want to break each app into separate pricing. I think that's affordable for most. Better start saving your pennies.... "iWork at $69" I have yet to see any other program that supported Pages documents, if you want to look at it that way.
shark47
on Sep 10, 2008
bettieblu, I'm sure your comment will win you a lot of support from your socialist friends. If Porsche and other car manufacturers (including Lotus) had shared all technical details with other manufacturers, I'm sure it would've benefited consumers in the short term, but it would have killed innovation in the long term because there would be no incentive to innovate. Even Google, a strong proponent of open standards keeps its own ranking algorithm proprietary. I think there's a place for both open and proprietary formats in our society.
yert
on Sep 10, 2008
Best news on this list was that Steve Jobs is okay. (Note that this would have been true even if he announced that, hm... OS X would be going open hardware or something outrageous.) Honestly, I don't see why people were so down on his health. If you are worried about Steve Jobs health, then don't invest in Apple. Simple as that. Don't go shouting that the man is going to die. The iPod thing on the other hand, was obvious. The Zune has a good form factor in its flash-based players. Apple saw this. End of story. Now what are we supposed to do with the Laser? Wasn't Microsoft supposed to have a mouse related thing?
bettieblu
on Sep 10, 2008
@waethorn, I agree Apple, Open Office all of them would have to support the standard. Dont be so defensive. I use Word as an obvious example because .doc is the de-facto standard and if any company is even thinking about switching the nightmare of converting thousands of documents is usually the big stop. I remember the days of doing large scale Word Perfect to Word conversions.
bettieblu
on Sep 10, 2008
@shark "I'm sure your comment will win you a lot of support from your socialist friends." Does J@k @$$ run in the family or are your panties in a knot? You missed the point completely, even more so by using an analogy that involves automobiles. The automobile industry is full of standards. I mean simply a 10mm wrench works on both a Porche and a Lotus. I never said MS should give out the code for Office for everyone to copy. Not at all. Nor Apple or any other vendor. However should use a standard document format, and that is what the governments of the world want. If Office is so great and priced right then why not support the open doc standard???? Reality is many companies and individuals would move away from it, unless the price came down. Waethorn can quote student prices all day, or find a link to some deal, but day to day prices say from a big distributor like CDW, Office is still more expensive. And all of its more expensive than OpenOffice. Now I think Office is way better than OpenOffice that is for sure, and I would probably pay for it. However if the was a true document standard I bet you would see more competition for sure.
DRWAM
on Sep 10, 2008
Wae, you LIAR, I bought MS Office 2004 with a free upgrade to 2008 for under $50 after an MS rebate, while my buddy got his for $29 from Amazon. I got the edition that supports Exchange which has a suggested retail of a few hundred. Thankyou Redmond! Yeh, I Wae, I'm cheap. Also, most colleges offer Office for free or for a really reduced price. Obviously Wae, I was just teasing you. I am using LiveMeeting right now, to attend my Physicians IT meeting. They dumped GE and found a Microsoft product to create a digital hospital system for 3 hospitals! This is considerably less costly and the big thing is Computer Order Entry. This will rid 50% of all serious/fatal medical errors!!!!! Again, thank you Redmond for saving lives [and help make me wealthy]. Digital record management obviously is a key structure too. They will save millions of dollars, since GE wanted $81 million. This is incredible.
shark47
on Sep 10, 2008
bettieblu, Yes, the automobile industry is full of standards, but it's not a 10mm nut that defines the Porsche or Lotus or an Audi. It's technologies like quattro, which is proprietary. The reason that exchange is so popular is not because Microsoft forced customers to use it. Where I used to work earlier, we actually moved from an in house commercial product to Microsoft Outlook because it was better. Even in my current company, we moved from Lotus Notes to Outlook. It's not because Microsoft forced us to. It's because their technology was better. BTW, I don't know why you had to take cheap shots at my family.
johnpapola
on Sep 10, 2008
@Doc, "John and others, that "little treat from the great wikipedia" sounds like my wife and all my old girlfriends." Hilarious! So true! My wife is pretty good though, I must admit.
bettieblu
on Sep 10, 2008
Hey man if you cant take it dont start labeling people. You don't know I am socialist any more than I know your J@k @$$. To your point a file format does not define Microsoft Word. The program its features, capabilities, and quality do. Have the best scripting language (VBA vs Applescript) or best grammer checker or whatever. Compete on that, and let users have a standard file format.
shark47
on Sep 10, 2008
Dude, if you cannot read English, that's not my problem. Don't assume things. I never called you a socialist. I said your socialist friends will like the idea of everything being open. Moreover, I didn't drag your family into this by calling them names. OK? In any case, there's a difference between calling you a socialist and telling me that my family is full of jackasses. I would expect an apology for that from you, but I don't think I'll get one. Regarding your argument about Office, do you think Office became popular because of the .doc file format in the first place? It's like saying iPods are popular because of the .aac format. Moreover, the Office 2007 file format - Office Open XML is a free and open standard. Anyway, my argument was that there are some things that should be standardized and some that should remain proprietary.
chuckb84
on Sep 10, 2008
@Waethorn "OpenGL is a legacy API that only outdated 3D rendering apps and John Carmack use." Hmm. John Carmack is actually a pretty good endorsement of OpenGL! On this point of standards, we really should try to find some common ground that has nothing to do with Apple, Microsoft, or any other single company. Microsoft has historically used this to force their products on people who don't want them. Office and Exchange are the best examples. I don't CARE if you want to use Windows/Office/Exchange, etc. I care A LOT if Microsoft uses proprietary data formats to foist their crap on people who don't want it. To make the WinDudes happy, I feel the same way when Apple does it. Open standards and data interoperability are the keys to everyone getting to use what they like, without the heavy hand of Microsoft (for office apps) or Apple (for music). We have this thing called the "internet" and it works well for everyone. Why? Mainly because the data transport and description layers do NOT CARE what computer is on the end of the wire (tcp/ip and HTML, etc). This success is hard to argue with. It is a common interest of all computer users to support open file formats and non-proprietary transport protocols. The comment earlier has it -precisely- correct: Microsoft and others can compete on how they let you manipulate the data (ie, the features in Word, Excel, etc), not by locking you in via a proprietary format. You do all realize that, if you go back far enough in time, Word will not read its own files? Furthermore, the distance you have to travel in time for this to be true is not that far! This is totally unacceptable. My Phd thesis was done with a thing called "TeX". Twenty four years later, I can still read those files (not that my thesis really matters to many people at this point!). You can't trust your data to one company. This statement is independent of which company you are talking about. For example, my major reticence about Google docs is trusting them as custodians. Sure, they say "Don't be evil", but that's a slogan, not a guarantee. You can't trust Microsoft on this issue, or anyone else. OPEN data standards are the beadrock on which all computing advances must rest. I can't believe this is even slightly controversial. It's obvious....
MaryW
on Sep 10, 2008
Just to repeat that line from Gruber again... for Paul. "But NBC also wanted to raise prices for episodes of popular new shows, and that did not happen. Standard-def episodes of all new shows on iTunes remain at $2." So "customer-centric" NBC wanted to raise prices .... and "bad-guys" Apple didn't let them. Not only is Paul's spin just plain wrong, but it's also pretty stupid. Even though it would only be pennies a show, Apple would have probably profited by acceding to NBC's original demands.
gorath
on Sep 10, 2008
Is it really so bad to be called a socialist anyway? As for the open file formats of office 2007, they are quite overdue. The trouble that I see with proprietary file formats is that there's the possibility of whatever software needed to read/create the files, may one day not be available. You could then end up in a situation where you have loads of important files, that have become useless. I bang my head against walls about this reagularly, as the facility where I work has loads (and i mean LOADS - several exabytes) of multi-track audio data "backed up" in proprietary file formats, from SADiE, RADAR, ProTools workstations etc etc. Now that we've moved from SADiE systems, we have to keep a limping old machine around to be able to retreive archival copies. Soon, RADAR will also be retired, and yet, we'll have to keep the hardware around just to read the old data. Had they all used standard WAV files, or AES31 (which of course never existed back then) then we could still open them in any system forevermore. THAT, as I see it, is the main "against" argument for proprietary file formats. Hell, just ask Abbey Road, who've got a load of archival materials from various sources, that they can't play any more.
shark47
on Sep 10, 2008
Someone raised a point here about people using only 10% of the features in Office. I don't know if Paul brought this up in his show or if I heard it somewhere You can talk about feature creep in MS Office. But has anyone wondered that this feature creep occurs because people actually want them? As someone who works in the software industry, I know that this is the case. Different clients demand a different feature set. So, you can either have a customized solution for each client, which is a very expensive and time consuming solution or add features if enough people ask for it. MS is not forcing its clients to use Office or Exchange or even Live Meeting (in Doc's case). People use it because it's either cheaper than the alternative or fits their requirements better.
joe-dokes
on Sep 10, 2008
The new iPods. 120 Classic iPod. They dropped the 160 Gb because it wasn't selling, the 120 split the difference so today you get 40 Gb more for the same price. Truly the iPod classic has been played out, the click wheel interface is at the limits of what can easily and seamlessly be incorporated into a small device. New nano. The new nano is better than the fat nano, I always thought the fat nano looked awkward. The new one is a return to the Gen I nano design. The addition of a accelerometer makes the display actually useful for watching video clips. I would still argue that it is too small of a screen for anything other than a thirty second joke clip. Bang to shuffle is simply a way to show that the accelerometer is in their. New iPod Touch. Still a much better product than ANY zune. True web browser, the best interface of any portable media device. and now significantly cheaper. The new zunes. The zunes have in some ways caught up to the classic iPod and iPod Nano, and in some ways surpassed them. The overall user interface still lacks a click wheel, which I still believe is an excellent way to scroll through a lot of information. But overall the zune and iPod UI are both quite good. Many users on this site hate and I mean hate iTunes. The hatred borders on pathological. That being said, I believe both the software for the Zune and iTunes have enough features to manage even large music collections. The zune has an FM tuner. This feature has been missing, since the creation of the iPod. Much to many people's chagrin. I do actually think the idea that of hearing a song and being able to either download it immediately or mark it for later download is actually a good idea. I will however reserve judgement for the feature because poor implementation could be a deal killer. A good feature done badly, is in some ways worse than not having the feature at all. iTunes still doesn't support a music rental option. (On a side note, I really hate how both pundits, and the music industry call the schemes a subscription. If it were a subscription you'd actually get to keep some or all of the songs you download. If I subscribe to a magazine, I don't have to return the magazines when the subscription lapses.) I personally don't feel that the rental option offers much a value for the consumer, at the current prices. Perhaps if the price were dropped to 1/2 what it currently is it would, the value of two million possible downloads would overcome the fact that you don't own anything. So in the final analysis the Zune has two good features that the iPod classic and nano doesn't. Wifi ability to buy songs on the fly, and an FM tuner. (The first zune wasted it wifi capability on being able to squirt a DRM laden song to other non-existent zune users.) One of these can be overcome with an add on, the other can't. Is this enough to cut into iPod sales? No because the pricing is the same and the additional features are not compelling enough to cut into the iPod sales features. This is especially true since Apple seems to be focussing its efforts on the touch. Which although it still lacks an FM tuner, has a better interface, and more features than the zune can't touch. (pun intended) In addition the touch has an entry level price thirty dollars below the zune. The issue of Standards. For those that think that MS is a developer who promotes standards, please don't make me laugh, ALL technology companies have used proprietary formats to try to tie consumers to their products at one time or another. Truth be told, in some ways you don't want standards at the formation of any new technology, what you want is the market to determine which technology is going to win. Thus, when screw machines were first invented a large number of different types sizes and strengths of screws nuts and bolts came into being. Over time though, standardization helped to create a market place that benefited consumers. So today you can walk into any hardware store an purchase a standard bolt that will meet certain standards. Now if you argue that the MS .doc format is a standard, fine. But did MS publish the standard? They do now, but they didn't. I'm not arguing that MS should be forced to publish the code for office, I am arguing that if MS wants to call .doc a standard it should have to publish the specs for it. Now in the case of office .xml there is some controversy if MS published enough information for competitors to make a word processor that can actually be 100% compatible. Finally, I love how Waethorn argues that AAC isn't a standard, first in my mind a standard is something that any company can implement nearly perfectly (I say nearly simply because absolute perfection is impossible.) For example, the .mpeg 2 video standard, is a standard because ANY company can create a device that will play mpeg video. Thus, Apple can create a video player, Microsoft can create a video player, Real, etc. All they have to do is pay the licensing fee, (clearly not all standards have or need a licensing fee.) Thus, since AAC is open and implementable by any technology company it is a viable real standard. Second I would argue that a true standard exists only when it is controlled either by a consortium of companies, governmental body, or an industry trade group. When a single entity controls the standard and has the ability to change the standard at any time, than it really isn't a standard. One of the benefits of standards is that the evolve slowly, and this slow evolution can only be guaranteed by a system that requires input from a variety of stake holders. Third, since standards evolve so slowly, they should only be implemented when the technology is sufficiently mature. Thus, although a .doc standard would have been nice in 1992, doing so would have retarded the development of many good features in word processors. Thus, although I despise active x controls and many of the defacto standards that MS implemented in IE, I honestly feel that the internet and .html was not sufficiently advanced enough to fully adopt standards that would have allowed for the types of technologies that have been developed on the internet. That being said, the various technologies have matured enough, and MS refusal, or foot dragging is simply an attempt to maintain market share at the expense of consumers. Regards Joe Dokes Joe Dokes
tayme
on Sep 10, 2008
Joe Dokes - The guy so nice, they named him twice! :-) --tayme
DRWAM
on Sep 10, 2008
What? What? I don't don't understand stand! Nope tayme, it was just an echo post. It happens when the moon is in the 7th house, and Jupiter lies west Mars...

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