Trend towards “DIGITAL CONVERGENCE� may make Apple’s “iPhone� inevitable
Posted by Helper Monkey
In a recent survey of technology executives conducted by Pricewaterhouse Coopers, the overwhelming majority see a new “tech boom� on the horizon, spurred by a new “Digital Convergence�. This convergence is described as “the effort to bring together computer, phone, recording and broadcast technologies within an all-digital environment enabling new, flexible uses of products and services.�
Apple’s iPod was originally designed to serve as just such a unifying device, and has thus far succeeded in fending off attacks from would-be rivals. However, right now the biggest threat to the iPod’s dominance comes not from other MP3 players, but from cell phone companies. Most cellular carriers are cramming most of the iPod’s functionality into their handsets, thus making the prospect of carrying around one single portable lifestyle device more of a reality. When forced to select 1 indispensable “must haveâ€? device, most people would choose their cell phone over their iPod.
So, what’s a company like Apple to do? In order to truly be the “must have� portable device for the next 30 years or so, the iPod needs to gain both voice and wireless messaging functionality. Rumors of an iPhone have been rampant for so long that there is likely a great deal of truth to them. The question now is not whether Apple will design such a device, the question is how will Apple go about deploying/marketing it.
The idea of digital convergence applies not only to a blending of technologies, but a blending of companies through mergers and acquisitions to obtain that technology.
“The success of this second tech boom is dependent upon strategic partnerships that fulfill emerging consumer needs,� said Bill Cobourn, Partner and Global Technology Industry Leader, PricewaterhouseCoopers. “Companies are under pressure to gain footholds in digitally-related industries and markets. Executives see M&A as a means of capturing entire beachheads. To be a player in today’s integrated technology landscape, they must quickly take advantage of others’ core competencies.�
In order to succeed with rolling out an iPhone, Apple needs to partner with or acquire other companies. The idea of Apple starting its OWN cellular company are slim, but most large cellular companies rent out space on their networks to smaller carriers, so it is theoretically possible. More likely though, is the idea Apple will partner with a Cingular or a Sprint/Nextel and agree to share revenue from music/video downloads. While many of these cellular companies are attempting to offer their own music download services, the idea of partnering with Apple (with its well-established iTunes music store and its huge existing customer base) is an appealing prospect.
Still, those Apple fans chomping at the bit for an Apple branded iPhone should realize just what a huge financial risk Apple would be undertaking. Forty-one percent of respondents to the PWC survey say they anticipate major corporate failures, perhaps stemming from companies that reach too far beyond their strongest skills.
“CEOs, while excited about the possibilities of digital convergence, are carefully looking out for the long-term financial viability of their companies,� said Cobourn. “Respondents to our survey are looking to deliver enhanced products, gain new customers and increase market share without taking on unnecessary risk and devaluation.�
To the rumor community, the iPhone is a foregone conclusion. Apple needs to protect its portable media dominance, and from a business perspective, it’s the obvious next step. However, despite the choice seeming to be a simple one, Apple needs to be cautious in how it proceeds. Choosing the wrong partner (or partners?) will doom the iPhone as surely as a clunky design and 100 song limit would (no offense, Motorola).
Apple adds NBC News Programs to iTunes (sort of…)
Posted by Lab Rat
Are you feeling the current offerings on iTunes are not informative enough despite the new Discovery Channel additions? Well, you’re in luck. Apple has added a bunch of NBC News programs to iTunes. Shows include: NBC News Specials (Brian Williams special reports), NBC News Time Capsule ( A news retrospective), Tom Brokaw Reports (specials giving us his :insightful coverageâ€? of important topics), Meet The Presidents (Meet The Press staff interviewing top government officials), CNBC Specials (financial and global economic issues).
Additionally, there are some less “newsy�, more sensational offerings, such as Dateline: Crime & Punishment (Covering the world of serial killers), Caught On Tape (MSNBC looks at tattoo freaks, exorcists and more), and Lockup (a look at life behind bars).
I’m not sure whether Apple released these yesterday (as part of a usual Tuesday release) or if these are up prematurely, and meant for a NEXT Tuesday launch. At the time of this post, all the shows contain 0 episodes (with the exception of CNBC Specials which has 4 episodes of Mad Money), but you can still buy all of the series for $7.99 to $14.99 if you have faith that Apple will actually post episodes.
Nike/Apple unveil Nike+iPod Sport Kit
Posted by Dr. Macenstein
Well, it looks like our exclusive predictions of the Nike/Apple partnership did indeed come true.
Hooray for us. We finally got one right.
And we weren’t even that far off when we jokingly suggested a new shoe that changes songs on each step might be in the works. Apparently all the to-do was about a new Nike+iPod Sport Kit which is designed to transmit information about your running workout (such as distance, time, calories burned, etc.) from the sneakers to your iPod nano. The information is displayed on the nano’s screen AND real-time audible feedback also is provided through headphones. So at least the announcement was more than just a new nano armband (by the way, there’s a new nano armband too).
There is no word yet on exactly how the information is transmitted from the sneakers to the iPod, but Bluetooth would be a good guess. Since Bluetooth is not yet built into the nano (as far as we know) the sport kit likely contains some sort of adapter that connects to the nano as well as the shoe.
The sport kit (available this July) costs $29, which isn’t so bad, but requires a nano and a Nike+ shoe ($100). Our report that the newly registered domain tuneyourrun.com was somehow connected with the announcement also turned out to be legit, as that is the new slogan for Nike’s ad campaign.
Of special note here is that this “technology� seems to work only with the nano, not regular sized iPods. The fact that the nano is now being presented as the “work out� iPod likely means rumors of the iPod shuffle’s impending demise may prove true.
RUMOR: Update on Nike/Apple Partnership
Posted by Dr. Macenstein
2 weeks ago we reported on a possible Nike/Apple partnership. At the time, reports suggested we might have seen something official last week, although nothing concrete ever showed up. Well, Macenstein reader Oregon Runner throws a little more feul to fire by pointing out the following:
“If anyone finds this interesting, do a whois domain search for the website www.tuneyourrun.com and you’ll see a recently registered website to NIKE.â€?
The domain is currently empty, however, it IS indeed registered to Nike, and the name implies a running/music combo. It was registered May 18th (about 4 days after our first report came in). After receiving our previous Nike/Apple rumor plus now reading rumors that the shuffle line may be being discontinued, there could be something here after all.
Stay “tune�d.
Report: Apple’s 5th Avenue Store already has a 30-foot scratch
Posted by iGor
The All-Glass 5th Avenue Apple Store is still 4 hours from opening, yet it already has a giant 30-foot scratch on it. Apparently the store — designed by the makers of Apple’s popular iPod music player— was actually made from the same materials as the portable music player’s screen.
“We negotiated a terrific price on the material we use for the screen from our vendors, and figured it might be a good way to shave a few bucks off the store’s construction costs� a spokeswoman said. “We are already in talks with Incase to develop a protective clear-rubber cover for the store. It will have a hole for the door, and should not affect the overall aesthetics…at least not too much. Our customers have kind of gotten used to the look of beautifully designed eelctronics hidden in bulky rubber protective cases, and we think they will be excited to see the look carried over to our flagship store as well.�
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