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.�
Magician David Blaine to attempt to escape from Apple’s Fifth Avenue Store
Posted by iGor
Fresh off his recently televised underwater-escape failure, magician David Blaine has announced he will attempt a slightly less risky stunt in NYC this summer.
“ I plan to spend 9 hours encased inside Apple’s giant ALL-GLASS 5th Avenue store, after which time I will attempt to leave the store via a staircase also made entirely of glass.� Blaine said in a press conference earlier this afternoon.
Apple’s inescapable glass cube.When pressed on what exactly about this was “magicalâ€?, Blaine replied, “Well, in addition to eschewing the elevator in favor of walking up over 30 GLASS STEPS… before I am entombed in this brilliant cube made ENTIRELY OF GLASS, I will ask one random fan to pick a card. Upon emerging 9 hours later, I will reveal the identity of that card. Houdini himself never attempted such a stunt in such a large GLASS CUBE.â€?
The special, titled “David Blaine: An Ass in Glass� , will be shown on local public access cable channels across the New York Tri-State area, after all 4 major networks passed on the television rights.
Hundreds of people test out the staircase Blaine will attempt to walk up.MacBook’s “Glossy� screen annoying
Posted by Dr. Macenstein
I happened to be in the Short Hills, NJ Apple Store today, so I figured I would take a peek at the newly released MacBooks. Now, this is totally my opinion, but I was immediately struck by two things about the new MacBook. First, the black MacBook looks about as nice as a generic Dell Laptop, and second, the new “Glossy� display is pretty annoying to use.
I was initially happy to see Apple release a non-white MacBook, but the pictures on the website look far more appealing than the unit does in person. Somehow the black looks bulkier, older, and less stylish. I always thought black was a slimming color, but somehow it seems to do just the opposite with the MacBook. I think I would rather have seen Apple release a red, yellow, or blue MacBook if they wanted a break from white.
And as for the new glossy display… Apple made this optional on the MacBook Pro, and I can see why. Granted the Apple Store is perhaps a more brightly lit environment than some, but the reflections on the display are considerable and distracting. I cannot imagine trying to use this outside on a sunny day.
On paper the new Macbook’s tech specs look great, and I am sure they will perform well. However, anyone thinking of plunking down an extra $200 for a black MacBook based on seeing it on Apple’s website ought to do themselves a favor and first go check one out in person.
REVIEW: iPod Hi-Fi… Overpriced, even for Apple
Posted by Lab Rat
Apple has a long tradition of taking a good idea, perfecting it, simplifying it, encasing it in white plastic, and then charging way too much for it. As a loyal Mac user I have come to appreciate that as good as Apple’s products are, Apple’s marketing department is even better. Those looking for proof need look no further than Apple’s iPod Hi-Fi speaker system.
Home Stereo. Reinvented.
Apple’s iPod Hi-Fi (I wonder if they had to pay a licensing fee to use “iPod� in the title?) is marketed as the reinvention of the home stereo. This is sort of like when Lexus puts out a new model and says “We’ve reinvented driving�. No you didn’t. You made a nice (but slightly over-priced) car that gets you where you want to go. Same with the iPod Hi-Fi.
Before anyone accuses me of bashing Apple’s first foray into the speaker market, let me just say the iPod Hi-Fi does indeed deliver one of the best listening experiences you can get in the $200-$250 price range. The problem is, Apple has priced these speakers at $349, which in theory pushes them up into competition with “real� speakers. The iPod Hi-Fi just isn’t up to the challenge.
Ease of Use
Here is where the iPod Hi-Fi shines. It was designed by the makers of the iPod, so it stands to reason that it should work seamlessly with the iPod, and it does. The built-in dock, located on the top of the Hi-Fi, serves as both a charging station and a line-in for the unit. The iPod Hi-Fi does not have a built-in display of any kind, but thanks to the dock connector, you don’t need one. Using your iPod’s display and the iPod Hi-Fi’s remote you can adjust a few sound settings, such as bass and treble. Apple calls these “Tone Controls�. Additionally, you can set the Hi-Fi to display the album art of the track you are listening too if you’d like (assuming you have a color screened iPod). One thing I thought was interesting; the iPod Hi-Fi’s remote is the same as the iMac and Mac mini’s, so if you have the Hi-Fi positioned near your computer, you will find BOTH volumes will go up and down when using the remote. The plus side is if you lose one, you’ll have a backup.
The iPod Hi-Fi has both a built-in dock for charging your iPod as well as the universal Apple remote.
One area Apple dropped the ball is with Air Tunes integration. To hook up AirTunes you need to have an open nearby outlet and a mini stereo chord to run to the Hi-Fi’s audio in port on the back. Apple should really have thought to include an extra AC outlet on the back of the Hi-Fi for plugging in the AirPort Express unit.
Sound Quality
Like I said earlier, the iPod Hi-Fi sounds quite good for an all in one unit. It has a pretty deep bass for a system of its size, but I found on pretty much every song the vocals sounded muted. Despite trying just about every iPod EQ setting or Hi-Fi “Tone Control� setting, the overall sound just seemed a bit low. This was not something that initially jumped out at me, in fact I thought the first song I played (“Lightning Crashes� by LIVE) actually sounded great. However, I then played the exact same song on a pair of Audioengine’s A5 speakers (also priced at $349), and the difference was day and night. Suddenly the vocals popped, the bass got even deeper, and the mid ranges sounded crystal clear. Switching back to the iPod Hi-Fi, suddenly the tones sounded muddied.
I would put the sound quality of the iPod Hi-Fi slightly (VERY slightly) above the recently reviewed Boomtube H2O1 (another portable speaker solution), by ThinkOutside, mainly for its deeper bass. Yet, the iPod Hi-Fi costs about $160 more than the Boomtube. So what do you get for that $160? An extra 10 pounds and a remote. Additionally, the Boomtube runs off a RECHARGEABLE battery. The iPod Hi-Fi needs 6 hefty D-cell batteries to play as a portable unit, and we found those only lasted about 7 hours of continuous use.
The Boomtube H2O1
Portability
Granted, the Audioengines I mentioned above are not “portable� speakers, but they by no means tower over the iPod Hi-Fi either. If Audioengine had decided to slap a $5 handle on their speakers and call them portable, they would have a pretty similarly sized (and weighted) “portable� unit. Basically what I am saying here is it was possible for Apple to fit higher quality components into the Hi-Fi’s form factor without upping the cost.
The iPod Hi-Fi is pretty much the same size as the Audioengine A5’s
One final note on portability… the front of the iPod Hi-Fi is standard speaker mesh fabric. Most iPod speaker sets that bill themselves as portable are made of a durable material with the speakers encased in some sort of protective plastic mesh grill. While I am sure this can compromise sound quality, Apple could have at least included some sort of protective case for the Hi-Fi. As is, you can’t exactly throw it in the back of your SUV and drive up to the mountains. It needs to be fairly well pack to keep anything else from squishing it and damaging that material. Also, Apple seems to have made the Hi-Fi out of the same white plastic the iPod is made of. Not exactly the most rugged and scratch-proof of materials.
Final Thoughts
Despite all my criticisms, the iPod Hi-Fi delivers a great room-filling sound and decent bass, especially for an all-in-one unit. However, Apple’s claims that it is portable are more of a gimmick than practical. Just because it CAN run off batteries doesn’t make it portable. If your speakers weigh close to 20 pounds and have a handle that requires 2 hands to hold, how far are you gonna go? The clear intended use for the Hi-Fi is as a stationary home stereo or bookshelf system, and for the $349 price tag Apple slapped on it, there are better systems available.
Price: $349
Pros: Good sound, has remote, has a built-in dock
Cons: Way too expensive. Easily scratchable and speaker material too flimsy for a portable unit. Heavy with batteries. Despite Apple’s claims, this is not really a portable unit. For the price, there are better sounding home stereo alternatives. Did I mention it is way overpriced?
Apple (finally) releases the MacBook
Posted by Dr. Macenstein
After months of speculation and false rumors, Apple today released the 13-inch MacBook, a replacement for not only Apple’s iBook line, but also its 12-inch PowerBook. It is available in both white and black (for $200 more) models, and pricing starts at $1,199.
Coming as somewhat of a surprise is the new MacBook ships with a 2.0 GHz Core Duo chip instead of the rumored Core Solo. The graphics are handled by a 64 MB integrated Intel chip, like the one used in the new Mac minis. Also new to the line is a new “glossy widescreen� display which has also been added to the MacBook Pro line as a no-cost option. Apple’s Senior V.P. Phil Schiller claims the glossy screen was made optional on the pro models because many professional users prefer the “no glare� displays found on the current models.
Apple also took the occasion to bump up the speed on the MacBook Pros slightly. The high end models now top out at 2.16 GHz. Pricing is unchanged.
[UPDATE:] Macenstein reader Jason Sweitzer alerts us that the new MacBooks do indeed have the magnetic latch AppleInsider predicted back in February.
RUMOR: Apple/Nike “Mystery Product” this Thursday?
Posted by Helper Monkey
We have received a report that a possible Apple/Nike partnership is in the works on a mystery product, and could be unveiled as early as this Thursday.
From an anonymous submission:
“i work in the footwear industry, and a little birdie told me to expect
some nike/apple news very soon, i would guess at the thursday thing.
i’d heard about a year ago that they were pairing, based on info from
adidas contacts who had approached apple only to learn that they were
in cahoots with nike (having ended their philips partnership). i’ve
heard more recently thru contacts at nike that something big is coming
soon.�
While we have no idea if this information will yield anything, we believe the source itself believes this info to be true, and is legitimately placed in the industry. The question here is whether “soon� translates to Thursday�.
We have thus far been unimpressed with Apple’s clothing-related iPod integration, and can only assume this would be something of that nature. So someone at Nike saying this is “big� could be nothing more than a new iPod shuffle jogging case, which is nothing major. However, it COULD mean a new iPod shuffle jogging case for a NEW iPod shuffle, which WOULD be major.
Or a shoe that changes songs with each step.
Who knows?
I guess we’ll see in 5 days!
