Apple Unveils a Digital Music Player
Oct. 23, 2001 -- Apple Computer is trying to byte into the consumer music market.
The Cupertino, Calif.-based company has introduced its new iPod, a portable music player that stores digital songs in the digital MP3 format.
The $399 device features a five-gigabyte hard drive and can store more than 1,000 songs, or the equivalent of up to 100 CDs. An LCD screen on the unit displays the artist name, song title, and album name. A built-in battery can power the 6.5-ounce stainless steel player for nearly 10 hours.
The iPod device works only with Macintosh computers running Apple's proprietary operating system and music software called iTunes. The iPod player should be available on Nov. 10 and will come bundled with a new version of Apple's music software, iTunes2.
Apple officials expect the iPod to be a huge hit among the enthusiasts who have a Macintosh computer, and some analysts predict the iPod will become an instant hit like the iMac.
"I think the product has all the things you would expect from Apple," said Stephen Baker, an analyst with NPD Intelect, a market research firm in Reston, Va. But the stiff price that goes along with the sleek design and fancy software might make it a tough sell in a weak economy. "It's positioned way on the upper end of the market, which will make it difficult [buy]," said Baker.
Another potential snag is that the market for digital music remains murky. "It's still early on to get consumers to understand what digital music is about," said P.J. McNealy, an analyst with GartnerG2 in San Jose. "There needs to be more companies out there explaining what you get for a $399 player over a regular walkman."
Phil Schiller, vice president of worldwide product marketing for Apple wouldn't comment on how much the company will spend to market iPod in these tough economic times. He did note however, that an advertising blitz — consisting of over 22 million print ads and international TV commercials — would begin this week, several weeks in advance of the iPod's launch.
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