Apple's Buzz Machine Hits Overdrive

Sept. 12, 2006 — -- Whether Apple announces anything of interest at its much talked about news conference today is almost irrelevant, considering the enormity of the hype the company has generated just by sending out the invitations.

"Apple is so good at creating buzz that when they sent out the invitation last week to press and analysts about an event they were having this week, the invite alone made news," said Michael Gartenberg, an analyst with Jupiter Research.

Though speculation has been flying for a couple of weeks about a number of possible Apple announcements that would justify all the excitement, Apple's ability to leak out just enough information to whet appetites, but still get butts in the seats at its news conferences, is an enviable skill the company seems to have mastered.

The Buzz Machine

Through some educated guesswork and a hint from Apple, which included the word "Showtime" in big Hollywood lettering on the event invite, experts are assuming that Apple will announce the addition of full-length movies to its iTunes download service.

But the art of silence is one the marketing gurus at Apple know well, and analysts admit that while guesses and analysis serve them well with many companies and industries, with Apple, they know nothing.

"Even when people think they know the story, they don't know the whole story. And sometimes, they're completely wrong," Gartenberg said. "Perfect example: Last year everyone was expecting to see a refresh of the iPod, but no one was expecting to see the Nano."

The ability to pull a rabbit out of the proverbial hat is what keeps journalists and industry experts buzzing over what could be.

But as much as Apple's buzz machine is fueled by the hype-filled conjecture of those who cover the electronics business, it's also the brand's rabid fan base.

"First and foremost, people don't just buy Apple products, they live Apple products," said Stephen Baker, an analyst with the NPD Group. "They make unique things. It's a lifestyle as much as a piece of electronics, and that generates [a] lot of interest among people."

Movies and Telephones and Integration, Oh My!

So what does Apple have up its sleeve this time?

"Something to do with movies," Gartenberg said. "Some capabilities to put that [movie] content onto a TV set."

Gartenberg is pretty much in line with most of his colleagues, expecting an announcement that involves movie downloads and some kind of a new or refreshed iPod to play those movies.

But the question of whether people want to watch full-length feature films on a handheld device -- even one with a larger screen than current iPods -- is still up in the air.

"What's going to happen with the video iPod is still up in the air," Baker said. "Maybe that's not in the works. They've had some trouble supposedly developing that."

Baker thinks we may see some new technology to bridge Apple computers and entertainment products to the home.

Many have expressed concern over the iPod's inability to playback video on a regular TV set, and the introduction of software or hardware to compete with Microsoft's Media Center technology could make Apple a major contender for the world's living rooms.

And what about that rumored iPod phone people have been whispering about?

"The odds on that are bad," Baker said.

Whatever Apple shows us, one thing's for certain, we'll all be watching.