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10th September 2007

Speculation Ensues Around European iPhone

Rumors have been all over the blogosphere in recent months about the possibility of Apple’s (AAPL) iPhone going over seas to Europe. Various wireless carriers have been implicated as it seems as though Apple’s demanding requests towards carriers have caused some to shy away. This very issue was at the heart of Verizon’s refusal to sell the iPhone, as Apple would require continual payments from subscribers through Verizon, even after the phone was sold. AT&T was simply the second carrier asked, and by that point, AT&T actually realized the magnitude of such a device.

Unfortunately, the iPhone was not created with 3G technology and that is a direct fault of the network in the United States, or more specifically, AT&T’s network. When it comes to European phones and networks, 3G isn’t just standard, it’s the data transfer technology. It’s one of the most popular and fastest ways to deliver and receive content over the wireless pathways.

Two things then surround the current possibility that the iPhone will be in Europe. The very issue of carrier is the most important step in moving the iPhone to Europe. Rumors surrounding a number of different carriers have come to surface, but the most likely will be T-Mobile. T-Mobile has an incredible presence in Europe and will be able to handle the demanding processes associated with the iPhone. Also, T-Mobile runs a highly reliable 3G network. A possible brochure has also been made apparent. Below is a picture of a German T-Mobile ad for the iPhone, however it is unclear whether or not the picture is a fake.

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The second part of the move to Europe is less about rumors, and more about the international expansion goals that Apple has. In one of the initial media events that Apple held, which dealt with the iPhone and its basic details, Jobs outlined a plan for growth. His outline included a path towards gaining a 1% market share around the world. While 1 percent may not necessarily sound like much, the goal was more than just ambitious, it was astronomical. Where did they come up with that number? They’re always so cautious when it comes to earnings estimates, why would they go so far? How would they get 10 million units sold by 2008?

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There’s only one way. Steve Jobs knew from the very beginning, the iPhone was destined to be shipped to Europe and possibly even Asia as the popularity in America sparked international demand. With this in mind, it would be fair to say that the 10 million iPhone estimate is based upon FY 2007 and 2008 sales, and wouldn’t be seen in the beginning or middle of 2008. Apple is most likely attempting to secure a European wireless carrier by the end of 2007, in order to capture the full year of earnings in 2008.

Disclosure: Long Apple Inc. (AAPL)

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10th September 2007

iPod Nano Set to be the Winner this Holiday Season

After a set of amazing updates and releases over the past few days, Apple (AAPL) is poised to capture this holiday season by storm. Of most utmost importance is the updated release of the iPod Nano. Known for its small form factor and functional user interface, the Nano has just become the “it” device. Holding everything from Music, Podcasts, and Video, the new Nano is a huge leap from its predecessor. As the advertising campaign says, “[It’s] a little video for everyone.”

The shorter, stockier iPod Nano now measures in at around 2.75″ x 2.06″ x 0.26″. The music player offers two choices, a 4GB model which will hold about 1,000 songs and an 8GB model that will hold about 2,000 songs (in 128-Kbps AAC format). The device will have a continuous audio playback time of about 24 hours. The Nano now plays up to 5 hours of video playback on a single charge, with the capacity to hold 8 hours of video.

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It’s hard to believe some of the sweeping changes between the previous generation iPod Nano and the one offered today. For instance, a simple update to the screen brightness has made the screen 65 percent brighter. Resolution has also been increased to 320 x 240, which will allow for more pleasant and vivid movie watching. By making the device slightly shorter and wider, the screen has been widened and now sits at a 2-inch diagonal.

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Various websites have already received their Nanos and have pictures of the unboxing process. Check out one of the more popular gallerias at AppleInsider.com.

Reviews have also begun to surface, and the optimism doesn’t appear to be fading. PCMag.com has just completed a full-scale review:

In fact, a beautiful screen and just-as-thin body make the device seem like a large evolutionary step. The new user interface also combines the nicer touches of the iPhone’s U.I. (such as Cover Flow) with new elements (a split screen which shows album covers for highlighted songs and a new Now Playing screen).

The new main menu has a split screen, dividing the space equally between the familiar iPod menu lists on the left and a moving image of an album cover on the right.

The battery life for the nano is rated at 24 hours for audio and five hours for video playback. Our audio rundown test yielded a battery life of 24 hours and 6 minutes; our video test is still underway.

One of the only possible areas for concern would be the actual dimensions of the click-wheel, which seems to have continued to shrink. This could potentially be cause for concern for those users with larger fingers. We’d recommend actually getting your hands on one in an Apple Store if that is of any concern. Otherwise, the device is priced exceptionally well, starting at $149 (4GB model), and comes in a variety of colors (white, black, (red), lime green, and sky blue).

Disclosure: Long Apple Inc. (AAPL)

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10th September 2007

Disappointment Surrounds iPhone Million Mark

TheStreet.com is a site we follow religiously. Many of the articles are relevant and interesting perspectives of the current market. Unfortunately, I found something about Apple (AAPL) that caught my eye, and simply couldn’t resist verbally beating up the article.

The article can be found here, and is entitled “Apple Faces Cold Christmas.” Author, Scott Moritz consistently references market (non-Apple) estimates and opinionated statements throughout the article. Assuming that Apple had one million iPhones ready to sell, Scott says that the current amount sold has been well below estimates. Also, he motions towards the general critic sentiment of the iPhone in the form of 3G. 3G was supposedly going to be the downfall of the phone from the very beginning, as most “smartphones” feature 3G capabilities and run on faster networks than AT&T’s.

Scott MoritzWell gosh Mr. Moritz, you’ve just about summed up the very bearish argument that investors and consumers had from the very beginning. What’s changed from the beginning? Apple has sold one million iPhones well within 3 months time, at a price point of about $600 per phone.

Apple says it doesn’t comment on rumors. But this new slant on the holiday product picture emerges just as Apple is taking some heat over its handling of iPhone pricing.

He’s right, Apple and Steve Jobs have made a bit of a mistake lowering the iPhone’s price by $200 in about two months after the release. It’s a slap in the face of Apple fanboys and consumers. Shame on you Apple, but don’t underestimate this upcoming quarter’s earnings results. Those will be impressive, regardless of a little backlash.

…that means Apple so far has failed to sell out the 1 million phones it was prepared to supply in the first week of its introduction — signaling to industry experts that there was a limited demand for the ‘revolutionary’ new device.

The failure of the iPhone to sell out early in its run is “an unpleasant shock” for management, says one industry source.

Scott, I love how you simply mention this as if it were a fact backed by Apple. They never released public estimates, and simply said they would be prepared to sell as many iPhones as necessary during the first few weeks. Heck, we didn’t even know until the recent media event on September 5th that Apple was about to hit one million. So they’ve made about a half billion in revenue since starting. Don’t forget, Apple also has an incredible deal with AT&T, which should lead to a steady, heavy income for years to come.

Disclosure: Long Apple Inc. (AAPL)

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10th September 2007

Apple Sells One Million iPhones

“Yesterday, just 74 days after its introduction on June 29, Apple sold the one millionth iPhone. ‘One million iPhones in 74 days—it took almost two years to achieve this milestone with iPod,’ said Steve Jobs, Apple’s CEO. ‘We can’t wait to get this revolutionary product into the hands of even more customers this holiday season.’”

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7th September 2007

While Supplies Last: Buy a 4GB iPhone for $299 @ Apple.com

The Apple (AAPL) media event brought about a number of exciting changes, but looking at the leftovers, consumers can find incredible deals. The Apple iPhone had a $200 price cut after only two months and then, the 4GB model was removed from current production. Fortunately for consumers looking for iPhones that are cheaper then the current $399 price point, there’s a solution.

At the Apple Store on Apple.com, extra 4GB versions of the iPhone, which were well known as the choice that hardly sold because of shear hard disk size, are available for only $299. The $299 model is only until supplies dry up, but this deal is unheard of anywhere else.

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Check it out at: http://store.apple.com/1-800-MY-APPLE/WebObjects/
AppleStore.woa/wa/RSLID?mco=BC784DCD&nplm=MA501LL/A

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7th September 2007

Microsoft is Bleeding; The Zune is a Loser

Oh so often in Microsoft’s (MSFT) not so intellectual business moves, they go ahead and enter a market and business that isn’t natural for a software company. Microsoft’s Live Search is a perfect example of a company’s desperate attempt to enter a new market. Spending tremendous amounts of capital for a third-rate search experience. In another attempt at grabbing extra revenue from other markets, Microsoft’s failure of a music player, the Zune, is losing traction, fast.

 

Meanwhile, Apple (AAPL) has been making record profits, as their products continue to skyrocket towards greater sales and margins. The introduction of the iPod in 2001 is without a doubt when Apple began its tremendous turnaround. Now, with 5 products that all have a variety of “iPod” functionality and market share that encompasses about 75 to 80 percent of music player sales, it’s clear that Apple is creating THE music player.

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Despite these terrible statistics for an entering company, Microsoft decided to go forth with their own music player. With a choice of three colors, Brown, Black, and White, the Zune player certainly hasn’t failed because of choices (not that the color variable was even in question). Originally, the Zune introduced at a competitive price of $249 to Apple’s iPod, which was priced at $299. Both were 30 GB large and both were capable of playing video, but any real similarities or postives for the Zune end there.

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The Apple iPod product line-up has continuously been evolving. Various additions to the original iPod product have also been introduced. What has Microsoft been doing in the mean time? Price-cutting, price-cutting, and a little bit more price-cutting. Oh, I almost forgot, they added a whole two new colors! The player has quickly dropped 20 percent of its original price tag. Originally selling for $249, the player now sells for $199 (little known to much of the current media, as the price drop was made on September 5th, or the day of Apple’s special event), and can even be found on interestingly sketchy sites for about $149.

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The Zune was doomed from the start. The music player isn’t cross-compatible with Macintosh computer platforms, and only works with Microsoft’s own attempt at a music store/player. That means that any music you’ve downloaded from the iTunes store can’t get transferred to the Zune.

744px-pirate_flag_of_rack_rackhamsvg.pngScariest of all, are the deep cuts into the price point, without any real noticeable upgrades and improvements. The Zune was to compete directly with the regular iPod, which is now known as the iPod Classic. The funny thing is that the Zune is now $199, and still 30 GB. Meanwhile, the iPod Classic has a base price point of $249, and comes with an 80 GB hard drive. Sorry Microsoft, but your price cuts aren’t upgrades, find some other product/business to steal market share from.

Disclosure: Long Apple Inc. (AAPL)

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posted in Apple (AAPL), Microsoft (MSFT), iPod, iPod Classic | 5 Comments

5th September 2007

The Entire iPod Family Reinvents Itself

With the holiday season just around the corner, and an impressive new line of updated and new iPods, Apple (AAPL) is set-up to make a killing.

Here’s a brief rundown:

iPod Shuffle

  • Reinvented Colors
  • Product (RED) Color

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iPod Nano

  • New Stockier Version
  • Cut to $149 and $199
  • Plays Video
  • Slideshows with Music
  • New User Interface

cp_top_3x_nano_070905.jpg

iPod Classic

  • New Name for Original iPod
  • 80 GB and a larger 160 GB Hard Drive
  • Rounded, All-Metal Casing
  • Now from $249
  • New User Interface
  • Black and White

product-black-classic.jpgproduct-white-classic.jpg

iPod Touch

  • 8 GB and 16 GB
  • 3.5″ Touch-Screen Interface (much like the iPhone)
  • Wi-Fi Enabled
  • Download Music from iTunes Store Wirelessly
  • Safari Web Browser
  • YouTube Online Videos
  • 8MM thin
  • Starting from $299

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iPhone

  • Wi-Fi iTunes Downloads
  • No longer offering a 4 GB version
  • Price Reduction of the 8 GB to $399!

prod-iphone.jpg

Disclosure: Long Apple Inc. (AAPL)

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posted in Apple (AAPL), iPod, iPod Shuffle, iPod Nano, iPod Touch, iPhone, iPod Classic | 0 Comments

5th September 2007

Looking for Live Coverage of the Apple Event?

While MarketMatador.com won’t be offering live coverage during this “media only” event, a number of large websites will be offering free minute by minute updates of the event. Check out the various options below. Gizmodo and Endgadget always offer supreme coverage to any other sites, but we’ve included some of the others covering the event.

Live Coverage:

- Gizmodo
- Engadget
- Macworld
- MacDailyNews
- MacObserver
- ArsTechnica

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