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Apple Creates New iPod Division

I think the angle here is that the iPod isn't macintosh specific. They want to aggressively go after windows users with the iPod/iTunes/iTunes music store. Also, I imagine the iPod division would be in charge of other potential consumer level products, such as the rumored iPod with video out via a special dock, the rumored Apple video projector, etc.

Jon Rubenstein's touch will be important in that market. My question on all of this is will the Macintosh miss his touch, or will he still have input on Macintosh industrial design as well.
 
MoparShaha said:
I suppose this will be a good thing. It more clearly defines product development within the company. Should quiet all the whinners who keep saying Apple should start concentrating on computers instead of iPods (I'm probably one :) ). What might the negatives of this be though?
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Let's see. You want Apple to concentrate on improving Macs rather than iPods, yet you just put the head of hardware on the iPod's team...

Meanwhile, you have a marketing guy heading a computer that has always been about quality rather than marketting to the mass consumer.

I see more advanced iPods in the coming years, along with cheaper Macs of inferior build quality rushed out of development to meet "buying seasons".


:(
 
also, why does anyone think this hurts either of the new divisions. Each will be profitable in it's own right. If anything, it will put added emphasis back on the macintosh division, which otherwise may have started to coast and let the iPod carry the company.
 
Good Plan

Makes sense to me, now a division to focus on each product instead of one trying to juggle two radically different types of hardware. One can focus on the ipod, one on computers. Certainly sounds good to me.
 
it'll be very interesting to see how this affects the Beatles lawsuit - could it be the groundwork for a settlement? just a thought -
 
Where is Steve going to be hanging out more?

One possible danger I see is if Steve gets his time between Apple and iPod confused...like where is Steve going to be hanging out more?
 
Apple is focusing on what works. IBM is really dropping the ball with the G5 chips so the future still looks to be in Music. There is enough of a base established to keep the company profitable, but Apple is once again having to rely on more products to keep it afloat. It was the iMac four years ago.
 
Nemesis said:
That's cute. Now bring us those new PowerMacs and iMacs .. PLEASE!!!
It's been A YEAR since the last update!!!
:mad:
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PowerMacs were updated in November of last year, thats only HALF a year, also thats when the iMac 20" was released. Its only been 9 months since iMacs were updated. Try and keep the complaints accurate. I'm sure that Apple will release updates as soon as humanly possible.
 
A very positive step forward...

With ipod as the fastest growing sector within Apple this indicates their desire to keep it that way. It is very likely that the growth in the iPod sales will continue to sky rocket up. With the increase in small HD production , the HP deal , Apple had to make sure that they had a good person at the helm. It is easy to see them selling 5 M iPods in the current fiscal year
Q1 ... 733 K
Q2 ... 807 k
Q3 ... 1,300 k
Q4 ... 2,150 k
They add 100,000 selling locations with HP . 10 per location is 1M iPods. Maybe the Q4 number is low. The problem I see is production capacity.

Then the first Q of 2005 could be the real killer as they sell more iPods in one quarter than macs in one year.

This also brings our iTunes Music store with a few new contries coming on line open to a sell run rate of approaching 500M songs per year.

Bottom line for Apple
iTunes rev $500 M
iPod rev $1,500 M (lower than the current $/unit revenue)

Total of $2B in revenue for Apple. This would bring Apple back to a $10B company.
 
geerlingguy said:
I was wondering if they would do this... The only logical next step would be to spin off the iPod & iTunes into another company (kind of like they did with Claris) if they keep becoming more and more popular.
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I don't see this happening.. Today the APPLE stamped on the products is the thing that sells them so well (is it not?).
 
doogle said:
One possible danger I see is if Steve gets his time between Apple and iPod confused...like where is Steve going to be hanging out more?
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What's your point? First of all they're just divisions not companies that they created. Second, Steve is already CEO of two companies, being Pixar and Apple. He already devides his time. I don't think this will push things further than they are right now for Steve.
 
I suspect this means a switch for a horizontal to vertical organisational structure within Apple. Where previously there was a software and hardware division, with iTunes & Mac OS X being handled by Software and iPod & Mac hardware handled by Hardware, they're now cutting the cake the other way, with one division responsible for all things iPod, and one for all things Mac.

In the event that the Beatles win their case, Apple may have no choice but to present iPod and iTunes under their own brand, but this still does not mean that they will have to spin it off as a separate company. Personal view - Apple will not under any circumstances choose to do this, so left with no other option, they'll settle with the Beatles once and for all with a huge pay-off.

The truth is, far from spinning of their first taste of NEW success in years, they need to captialise on it and add a couple more non-Mac runaway hits to their product portfolio. Sony did not spin of Walkman or PlayStation as soon as they became successful.
 
The iPod is just an MP3 player. Don't make a separate division, because a simple MP3 player doesn't justify a whole division. Don't try to make it more than an MP3 player, because then it will cease to have the simplicity and unity of purpose that makes it great. Make whole new gadgets, and have a gadget division. Maybe that is where they are heading.
 
Not!

Krizoitz said:
PowerMacs were updated in November of last year, thats only HALF a year, also thats when the iMac 20" was released. Its only been 9 months since iMacs were updated. Try and keep the complaints accurate. I'm sure that Apple will release updates as soon as humanly possible.
Click to expand...

By an "update" I mean putting a decent processor inside: G4 used in iMacs is, what?, 2 years old G4 model and those processors used in PowerMacs were all introduced a year ago.
So, my points are valid regarding this update.
I want Apple put NEW processors in an update, not playing games with us by light case interior updates and leaving us with same old pocessors. That's sick, especially when thinking about iMacs.
:mad:
 
geerlingguy said:
I was wondering if they would do this... The only logical next step would be to spin off the iPod & iTunes into another company (kind of like they did with Claris) if they keep becoming more and more popular.

It's REALLY nice being the king! :D
Click to expand...

As I indicated in another thread this seems logical to me, in order to prevent lawsuits from The Beatles/ Apple. In this way the new company can expand their musical horizon.
 
I was sort of surprised to hear this, even though, I suppose it's not that earth shattering. I was annoyed to see this comment on on the story at Yahoo though: "Face it, the Mac is an also ran product with only its niche market to support its margin." What is up with that? It made me think of all of the "Apple's going under" mid 90's. grr..
 
yesh

Gus said:
This seems to be something else. I wonder if this might be a way of leveraging both the Beatles' and Eminiem's lawsuits? Is there a legal loophole that would create a distinction between the iPod division and the Mac division now?
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This could be the badger. :)

If the "Apple Records" only has a legal argument against another company being called Apple doing music, then there could be a valid reason why a division can be considered another company.

Is there a valid reason for this to be the case?
 
kettle said:
This could be the badger. :)

If the "Apple Records" only has a legal argument against another company being called Apple doing music, then there could be a valid reason why a division can be considered another company.

Is there a valid reason for this to be the case?
Click to expand...


I'm no legal monkey king, but would this only work if Apple Computers (with whom The Beatles have a problem) can clearly distinguish themselves entirely from "Apple Records"?

Jobs' legal team may have found a clause weakness in the agreement, but I can't think Apple Corps are going to call off the dogs just because a different change of attack.


But like I say, my knowledge of law is limited, but I certainly see this structure shift being directly related to the legal issues rather than the other suggestions this rumor is generating.
 
NOV said:
As I indicated in another thread this seems logical to me, in order to prevent lawsuits from The Beatles/ Apple. In this way the new company can expand their musical horizon.
Click to expand...

But it's still a division of Apple. I don't see how making it a separate division changes that situation. I assume the iPod will continue to have the Apple logo on it and will continue to be sold on Apple's website. And I assume Steve Jobs will continue to announce updates to it in his keynotes.

I think the iTunes store is more of a problem than the iPod is, considering Apple (Computer, that is) is not only selling music, but creating new compilations on the store: iTunes essentials. Apple is selling music and its own albums.

iTunes isn't included in the new iPod division. If they were trying to please Apple Corps, they would create a new company for iPod and iTunes under a different name, not have just the iPod as a division of Apple.
 
I read in one of the business pages that analysts will start looking unfavourably on Apple if they DON'T spin off the ipod. As the market for hard drive players and Apple's share of it, is getting to it's peak then they will generate the most from an ipo if they do it sooner rather than later. The market would go nuts for an ipod ipo, was the general feeling. Apple could make a killing to secure the medium term future of the company. It's inevitable that it's market share in the music space will get eroded in the next 2-3 years.
 
macker said:
I read in one of the business pages that analysts will start looking unfavourably on Apple if they DON'T spin off the ipod. As the market for hard drive players and Apple's share of it, is getting to it's peak then they will generate the most from an ipo if they do it sooner rather than later. The market would go nuts for an ipod ipo, was the general feeling. Apple could make a killing to secure the medium term future of the company. It's inevitable that it's market share in the music space will get eroded in the next 2-3 years.
Click to expand...

You completely midunderstand this- iPod is a new DIVISION, not a new company. Like Mitsubishi sells cars, and they sell TVs. There is only one company called Mitsubishi, yet these two things are in different divisions.

You don't have an IPO for a new division.
 
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