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Brian DipertEDN Senior Technical Editor Brian Dipert exposes, analyzes and
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Tuesday, September 9, 2008

Apple's Latest Intro Morass: Is Steve Jobs Inc. Running Out Of Gas?

Sep 9 2008 11:38AM | Permalink |Comments (24) |


When Apple hits a bad note in front of a few dozen N. California-based reporters at its corporate headquarters, the damage is notable but manageable. When Apple hits a bad note in front of hundreds of US-wide reporters at San Francisco's Yerba Buena Center for the Arts, as it did today, and especially after the company's PR troops have breathlessly hyped the event as a 'big deal' in order to get folks to fly out (at their publications' expense, of course) and attend, the consequences are...ahem...somewhat less controllable. So it is that you should prepare yourselves for the inevitable media backlash to this morning's disaster, along with plenty of further ruminations on the state of Steve Jobs' health (photos courtesy of Engadget):

To be perfectly clear upfront, I didn't personally attend today's City By The Bay soirée. However, I monitored the liveblogs from sites like Ars Technica, Engadget, Gizmodo and Macworld...and like them, walked away incredibly unimpressed. You gotta know things haven't gone well when you see comments like the following from Gizmodo:

Someone is laughing crazily in the background. He must be watching a different keynote than we are.

Out of fairness, I should point out that the blame isn't all Apple's to bear. The company's case partners leaked plenty of product shots and dimension sketches ahead of time, for example, thereby ruining some of the surprise. But Apple also prematurely telegraphed its moves; why else would it cut the prices of refurbished then-current-generation iPod classics, nanos and touches?

So what did Apple roll out?

Color me underwhelmed, particularly given the preparatory hype generated by Apple. The press doesn't like to have its time and money wasted, and I strongly suspect that the company will soon regret their over-enthusiastic promotion. And bigger-picture, as time goes on, Apple seems to be acting more and more like a monopolistic company that's run out of new ideas, that sees the digital music market (at the core of its last-few-year resurgence) maturing and therefore its growth slowing and its profitability evaporating, and that is responding by attempting to seize as big a slice of the total pie as possible. Speaking of pies, if I was Steve Jobs, I'd actually be quite worried about a chart he tossed up early on in the pitch (this time the shot's from Gizmodo):

A big chunk of 'other' is probably Creative Labs. And that last 2.6%? Microsoft. 'Nuff said? I thought so.

Whaddya think, folks? Agree or disagree with my stance on today's news?

Followup: As several commenters have already pointed out, the v2.1 iPod touch firmware upgrade is free for folks who've already dropped $10 on v2.0. Apologies for the Brian's Brain boo-boo. I've accordingly corrected the above writeup.


Reader Comments



at 9/9/2008 2:24:30 PM, TonyD said:
There a a few things still missing from all Apple audio offerings - the largest one being bluetooth headphones support - maybe Steve will give up and add this, after all the only reason I have ever heard is the quality - come on you've just add a poor speaker to the ipod touch????



at 9/9/2008 2:39:06 PM, Thinking about it said:
I am not a big Applea fan but my son has an Ipod. He really likes it, so it is good. My pocket has another ideas for him but that is how life is, if not we would not see models in new fashion verey few months.
I think Steve Jobs is an example to follow and for people like him is why this country is great. We may disagree with him or Bill gates, but no doubt that they are creators and not followers.
It is easy to criticy and not that easy to create. Steve Jobs has done a great job in many areas and deserves respect. At least he has mine.



at 9/9/2008 2:51:01 PM, Koosmar said:
Apple still doesn't get it. Their PCs are still the best there is, and should have won the war, but with the closed architecture to this day, they're still not satisfied to be "The Microsoft". They want it all, and as is seen with their computers, no competition brings little to no market share. We should all be enjoying a RISC based PC but are stuck with CISC and Microsoft, all because Apple folks want it all and they're never going to get it



at 9/9/2008 2:58:13 PM, vmarks said:
Bluetooth audio isn't there, and it isn't because it sounds poor (although it can) - it's because it eats battery life like crazy. So, Apple can spend tons of cash developing the feature, touting it, and then have Brian complain about their total utter failure to make battery life useful when using it. Or, they can save the money until the tech is mature and energy efficient, and then introduce it, at which point Brian will complain that they should have had it when he told them to in 2007. Fortunately for people who actually want the products, Apple has done a decent job of combining features in a sensible fashion at a price that makes sense to the 73% of folks who are willing to pay it.

I wouldn't rely on Gizmodo comments as a measure of reaction to the announcements - many commentators there love to post anti-Apple sentiment based on the notion that Gizmodo is too friendly to Apple products in general and the iPhone in specific. After all, all we need is for someone to post a silly uninformed comment on Brian's Brain, and then quote it elsewhere as representative of EDN. It doesn't make much sense in either case.



at 9/9/2008 3:19:32 PM, Apple losing its way said:
Innovate rapidly or get overtaken.

Does Wharton still teach to buy market-share until you have a monopoly, then pray for no competition, and hire a bunch of lawyers?

No wonder Korea and others are out-doing us.

I saw an Acer laptop at WorstBuy for $349. About the size of a VCR tape folded. Has XP and a 120 gig hard drive.

Why buy a crippled by policy iTouch, when you can get the whole computer for less money.

Skype?

This would hurt the ATT revenue stream.

Apple is wide open, and these prices are still high enough (even after the cuts) to attract market entry.

When you go preditory, you are supposed to leave no room for anyone else to make money underneath you...




at 9/9/2008 3:23:06 PM, Jim Jarvis said:
We''ve got an iPod, a nano, and two iPhones, albeit the earlier version. iTunes contains our entire CD library.
Although none of these platforms is perfect, we''re reasonably satisfied. What I think you''re struggling with is, indeed, a classic struggle. The Techno-wonks vs. the Market-babblers. The latter came up with multiple colors, I assume. At the end of the day, it''s still just flash ram with a user interface and maybe some radios. You''ll need a real audio system, if you aren''t satisfied with earbuds!
coach@themorsegroup.biz



at 9/9/2008 3:33:54 PM, Peter Glaskowsky said:
Sorry, Brian, the 2.1 upgrade isn''t "another" $10, it''s free to anyone with 2.0. For those who didn''t buy the previous upgrade, this one is the same price.

You seemed unusually critical here. Having a bad day?

. png





at 9/9/2008 3:35:18 PM, piklballboy said:
That Apple decided to introduce variants and updates is not shocking. That it requires money for bug fixes is not tolerable... If I were an iTouch owner and encountered bugs that require a firmware upgrade, and had to shell out even $10, I would be mad.



at 9/9/2008 3:35:26 PM, Brian Dipert said:
Dear Peter Glaskowsky, Thanks for the clarification on 2.0 vs 2.1 upgrade costs. Re bad day, no...I'm just not a fan of monopolies who abuse their power (and yes, that goes for Intel, Microsoft, etc too)



at 9/9/2008 3:37:25 PM, pilballboy said:
In spite of what Peter Glaskowsky says, I still wouldn't be happy if I had an earlier version (pre v2.0) of an iTouch. I think bug fixes should be free for a reasonably long period of time after a product introduction, unless the company who's developing the product doesn't care about quality.



at 9/9/2008 3:42:56 PM, Brian Dipert said:
Dear pilballboy, coming to the defense of Peter Glaskowsky, the bug fixes (at least as I understand them) were iPhone-specific (reception, 3G-vs-2G base station handoff, etc). For the iPod touch, the incremental 1.x-to-2.x firmware upgrades involved fairly substantial feature upticks.



at 9/9/2008 4:04:24 PM, RRD said:
The v2.1 firmware upgrade is free for iPod Touch owners that purchased v2.0. Its $10 only for folks upgrading from v1.x. At least get your facts right if you''re going to slam Apple.

Perhaps you are right in criticizing Apple PR for making a bigger deal out of this than it should have been. But you appear to be holding Apple up to a higher standard than other (less innovative) companies that you linked too. Rather I reckon these announcements reflect that iPod is a mature product that only needs "tweeks" to make it better. And the ipod Touch is still the most advanced MP3 player available unless you count the iPhone.

I have no desire for subscription music - there are plenty of great internet radio stations with programs tailored to individual tastes. Thats how I get exposed to new music without being inundated with genres that don''t appeal to me. My 2 cents.





at 9/9/2008 7:50:51 PM, Alex said:
I was waiting for the new iPod Touch and am not disappointed: I expected to get 16GB for the price of 8GB and I go it. I wished for a simple built in speaker and I got it. I think Apple doesn't only come up with new ideas but also listens to it's customers and improves their products step by step.
The new iPod Touch will be my Christmas present - if I can wait that long.



at 9/10/2008 3:11:07 AM, Allan said:
The biggest missing feature for me on the iphone & Ipod touch is the ability to stream out over WIFI to Apple''s Airport express.

Is this feature on Apples ToDo list?

Allan



at 9/10/2008 5:38:05 AM, Andy said:
I was hoping for GPS in the new touch. Any chance it's in the next gen....



at 9/10/2008 7:20:38 AM, Mario said:
A custom equalizer is a must have and it is still not available in any ipod. The available eq presets are all bad causing sound distortion.
Better earbuds and better sound are features I am looking for.



at 9/10/2008 7:23:04 AM, Jesse Helms said:
I find it interesting that when Apple delivers "surprises" the media salivates and can't stop oohing and ahhing. If the information is leaked out previous and the "surprise" factor is lost of course you have to switch gears and start up with the Apple bashing (because it is cool).

We can always talk about Jerry Sienfield, shoe stores, and Project Mojave and you can start again with your mind numbing praises.

You may be seriously disappointed when snow leopard comes out and it doesn't have 300 features you can show screen shots of for following six months.

But hey Apple bashing is always trendy.

Statements criticizing Apple?

Where have I heard that before?



at 9/10/2008 8:50:31 AM, Brian Dipert said:
Dear Jesse Helms, I'm quite confident in saying that even if I HADN'T already been aware of Apple's likely announcements due to pre-event leaks, I still would have been incredibly underwhelmed (Brian writes, typing into his MacBook, with G4 and G5 Power Macs at his right side, need I remind you)...Here's the ironic bit; I was poised to purchase a refurb'd 80GB iPod classic if Steve announced an iTunes subscription service, to supplement my iPod nano and for evaluation against (and possible replacement of) my Zune subscription service (and players). Steve didn't, so I didn't.



at 9/11/2008 2:25:11 PM, Lou Covey said:
Here's the thing. Apple is a huge sponsor of the free media on many levels. Their products employ hundreds of thousands of people around the world and even in this country. They invest in a lot of R&D and drive competition. Much of the content in trade publications is based on what Apple is doing. With all that in mind, I don't mind that the press spends an afternoon covering a less-than-stellar announcement.



at 9/11/2008 3:00:06 PM, Brian Dipert said:
Dear Lou Covey, I see...so, as the founder and head of a PR agency (www.vitalcompr.com) is it your usual recommendation to your clients that they overhype and under-deliver, thereby wasting the press's time and money? Or wait...are you now calling yourself a "press person" (www.newtechpress.net...and your claim, not mine) and if so, are you saying that you wouldn't mind having your time and money wasted? Here's the thing...which hat you happen to be wearing at any particular point in time is very confusing...please enlighten us...(p.s...it was the morning, as my writeup said, not the afternoon)



at 9/18/2008 12:24:39 PM, Pkay said:
Brian, "overhype and under-deliver" are relative terms. Many, many people expected much more than audio gear updates when Apple has never done that at the September announcements... what a waste! The buzz (due to both Apple''s secrecy and outstanding track record to amaze) has gotten so big it almost always results in disappointment at the actual product offerings. I wish that we''d all just mellow out a bit, and look at the big picture, and allow companies to SLOW down to emphasize stability, reliability, elegance in design, efficiency ... basically, quality in their products. Complaining every time Apple doesn''t come out with our personal favorite feature is a downer. (And mindless Apple-polishing is no better.) The category 5 spin storm is still coming: unfortunately, Jobs won''t be part of the big picture forever (am I the only one who noticed how gaunt he looked?) and then the spin will be unbearable. The stock will tank. And what we will need to focus on, and have the media focus on, are the tangibles and the fundamentals: what will the company produce in the near AND long term that really works, and yes, is innovative too? Apple will continue to garner market share in every sector if they focus on a balance of innovation and quality.



at 9/18/2008 4:11:50 PM, Brian Dipert said:
Dear Pkay, from today's post by me, I hope it's clear to you that I concur with your fewer-and-better preference. And like you, I didn't expect any computer-related announcements last week, so I wasn't disappointed in that regard, either. The root of my frustration is that Apple PR so over-hyped the event in striving to get sufficient media representation...then underdelivered to the expectations THEY THEMSELVES had cultivated. Their short-term focus to the detriment of long-term relationship will come back to haunt them, I suspect, because in the tradition of the Boy Who Cried Wolf, they won't be believed in the future and company coverage will suffer as a result. But of course, in their perpetual arrogance, they won't blame themselves...they'll curse the 'lazy media' instead.



at 9/19/2008 2:26:32 PM, Alan R. Weiss said:
We at Synchromesh Computing delivered a complete portable media player (hardware and software), with WiFi download capabilities, as well as complete back-end e-commerce software (the equivalent of Apple iPod and iTunes) in 4 months for a customer - start to finish. We also heavily customized the PMP for a very specific, and lucrative, target market of 3 million in the USA, and worldwide customer base of over 50 million - and we will manage to avoid competing against "the big boys" completely. I have to tell you that two bottlenecks were difficult to solve: flash memory speed, and WiFi. We solved them, but it wasn''t easy. The real trick was finding a market that didn''t compete directly with Zune, or iPod, or Sansa, or Creative ... those guys all have great players and now many of them have WiFi. Our WiFi is far more capable, but at least those guys are tackling it.



at 9/23/2008 10:44:27 AM, DM said:
One obvious underdelivery problem is that Genius recommends songs that you''ve already purchased from iTunes. Not sure what it is doing when processing your library.

Having said that, I find its recommendations to be reasonable.


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