Apple Creates New iPod Division

[weldon]

Here's my take on the new division...

Apple is riding a huge wave of success with the iPod and iTMS. The future success of the product is going to be tied to further market penetration to people that have never had an MP3 player. The key to generating these new sales is going to be marketing and promotion partners like Pepsi, AOL, HP, the record companies, artists, etc. These heavyweight partners want to talk to an executive that can make things happen in a big dollar marketing agreement. The person in charge of iTunes and iTMS needs to be a Sr. VP and that person also needs the time to work on these relationships. Therefore, iPod needs to be its own division so that Sr. VP isn't splitting duties/time working on anything else.

I think the Apple Corp. lawsuit is a red herring. Apple will still be found in breach of contract even if they spin off iPod into a different brand because they have been operating for a couple years under the Apple name. Sure, they can spin it off as part of a settlement agreement or a court-ordered injunction to stop selling music under the Apple name. No need to take that step, or really prepare for that until forced to do so.

Of course, it would also be great if Apple announced that it was buying Roku Labs and folding that company into the new iPod division.

 

[bobringer]

Rubenstein's Role

Isn't it odd though, probably the top hardware engineer in Apple (Rubenstein), heading a division with just two products - iPod and iPod mini. Both of which are built mostly of off-the-shelf components with no ASICs from Apple (that I'm aware of).

Surely, this must be the clearest sign yet that Apple has plans for the iPod line beyond just music.

You got it...

That was the first thing I thought.

You didn't mention it but I saw a previous post where you mentioned personal reasons for disliking Tim Cook. I understand your position in your situation but knowing Apple, do you think Cook told you guys what he thought was correct at the time?

 

[doogle]

You got it...

That was the first thing I thought.

You didn't mention it but I saw a previous post where you mentioned personal reasons for disliking Tim Cook. I understand your position in your situation but knowing Apple, do you think Cook told you guys what he thought was correct at the time?

This is the interesting bit - the iPod has only a small percentage of Apple in it (strictly speaking) I am not even sure that Ives designed its look - I would not be surprised if he didn't (it does not have his touch visible)...this could mean more devices utilizing other manufacturers etc. and perhaps avoid some of that classic Apple rigidity in moving fast..

Don't forget the iPod and iTunes are the best Trojan Horses for infiltrating the Windows world and Steve still knows it.

 

[doogle]

As articles are stating* Sony is too big to move fast (and smart) enough to respond to the iPod - it could take them years!
Creating a separate iPod division is one way of avoiding the development of the iPod getting slow and caught up in developments with the OS etc. In fact iPod, if a dynamic little unit moving fast, could act a s a stimulus to Apple.
There are now two brands Apple and iPod - double the fun!


*Howard Stringer, 62, Sony's vice chairman and head of the company's U.S. divisions, says executives were so concerned about music piracy that they couldn't agree with designers on the kind of player to create.
.
"We didn't get there, and by that time, Steve Jobs was there," said Stringer, referring to Apple's CEO.