CNN link to new iPods released today
Here is the link to the CNN story on todays announcement:
http://www.cnn.com/2006/TECH/internet/09/12/apple.movies.reut/index.html
Tuesday unveiled a number of new iPods, including one with the most capacity to date, and said new versions of the popular digital music players would sport video games such as Pac-Man and Tetris.
Speaking at an event in San Francisco where the company was expected to introduce a movie download service, Chief Executive Steve Jobs said the new 80 gigabyte iPod would cost $349.
The company also introduced a new, thinner iPod Nano available in five colors with 24 hours battery life.
Movie downloads
Analysts anticipate Apple will also deliver a product to solve the entertainment industry's current dilemma: how to bridge the gap between the living room television and the computer -- movie downloads.
If Apple could solve that problem, analysts see the potential for another round of robust growth at a time when the company is facing a growing number of competitors in the digital music market, including Microsoft Corp.
"When you're talking movie downloads within the home, you have to be able to get stuff from the downloaded point to the big screen in the house," said Michael Gartenberg, analyst at Jupiter. "That's been the weak link."
CinemaNow, Movielink and Amazon.com Inc. already offer movies for download to computers and it's not like Apple simply to sell a competing product by adding full-length feature films to its iTunes store, analysts said.
"Apple is genetically incapable of doing a 'me too' thing," said Mike McGuire, analyst at Gartner. "So we could see something very interesting."
Analysts speculated that Apple may stream movie videos directly on to television sets, or connect Apple's smallest desktop computer, the Mac Mini, to the TV with a more user-friendly interface, or use an upgraded video iPod to make the link.
A hot new product would certainly be welcome news for Apple, whose iPod sales continue to be strong but with the growth rate slowing.
A number of rivals are hot on its heels and the overall U.S. digital audio player market is feeling crowded.
Mobile phone manufacturers continue to roll out new handsets coupled with music players, and Microsoft plans to launch its "Zune" portable media player before year-end.
"The market is feeling saturated right now particularly with iPod products," said Rob Enderle, principal analyst at the Enderle Group.
While Microsoft faces an uphill climb to topple Apple, analysts point to the software giant's deep pockets.
"When a company like Microsoft enters the market, you simply can't ignore what the ramifications will be," said Jupiter's Gartenberg.
The idea of a computer as a home entertainment hub is hardly new. Microsoft has attempted a PC entertainment hub with its Windows Media Center, but the product only got a lukewarm response from mainstream consumers.
Apple's specialty, according to analysts, is to find a simple, complete and consumer-friendly way to tackle a problem fraught with thorny issues such as digital rights management, and the picture and sound quality of downloaded video.
The company's existing AirPort Express allows users to stream downloaded music to home stereo equipment. Video to televisions could be a natural next step, analysts said.
Apple's iTunes store also is the undisputed market leader for paid video and audio downloads.
"Apple has the capability of understanding the parts that need to be fixed and create a media center that can capture the hearts and minds," said Enderle.
On the company's Web site, Apple has a picture of the Mac mini hooked up to a large flat-screen television to highlight its Front Row software, a remote control technology that plays music, video and displays pictures.
"Apple has a number of arrows in the quiver when it comes to technology," said Michael Goodman, senior analyst at Yankee Group. "You have pieces that can work together to bridge the gap between the PC and the TV."