A weigh-in between Cisco's Flip Video camera and Apple's new iPod Nano with video camera.
(Credit: Stephen Shankland/CNET)One of the biggest revelations at Apple's music event Wednesday wasn't just that the iPod Nano now has a video camera, but that Apple has the popular Flip Video camera squarely in its sights.
With user-created video exploding, Apple CEO Steve Jobs uttered what is probably one of the more frightening things rival electronics industry execs can hear: "We want to get in on this."
Already having decimated the MP3 player market with the iPod, and putting pressure on fellow smartphone makers, Apple now hopes to take on the Flip in its own backyard: short, user-generated video clips. Cisco purchased Pure Digital, the maker of the popular flash-based camera, earlier this year for almost $600 million because it was clearly the leader in its field. The Flip Video set itself apart by making the process of creating, editing, and uploading short videos to sites like YouTube very uncomplicated. In two years the company said it sold 2 million devices.
Cisco wasn't the only major technology company that noticed. At Wednesday event, Jobs specifically referenced the Flip's success.
"Video has exploded in the last few years," he said. A lot of people are posting videos to sites like YouTube and much of them are coming from solid-state video cameras like the Flip, he said, showing the Flip Ultra model, which comes with 4GB of storage for $149.
Apple is attempting to one-up the Flip by inserting a video camera inside the iPod Nano, along with a microphone and internal speaker for video playback. Like the Flip, the Nano is supposed to have easy video uploading right to YouTube. Comparing them head to head, since the base model Nano now comes with 8GB of storage and costs $159, the value of the Nano with all the additions (media player, FM tuner, pedometer) certainly seems attractive. Of course until we actually use it, it's hard to say how much of a threat the Nano's new camera will be.
Flip of course isn't the only minicamcorder maker that could be worried about Apple's attempts to enter this market. The Flip begot several imitators, like the Sony Webby, the Kodak Zi8, and devices from RCA, Sanyo, and Creative.
But Flip is the de facto leader in minicams, and its Ultra and Mino models have several things going for them that the much more compact Nano doesn't, like the Flip's flip-out USB port that allows the camera to be plugged directly into a computer without need for a connector cable. The Flip also has user-replaceable batteries. Though the Nano overall has a smaller footprint, it was a bit unfair that when comparing the Flip to the Nano during its presentation Apple used the chunkiest model of Flip available (the Ultra), when the Mino is much slimmer and more compact.
Still, the fact that Apple wants to be in this market puts a lot of pressure on Cisco and its Flip camera. For its part, Cisco responded publicly using Twitter, posting a message after the Apple event that said, "Imitation is the sincerest form of flattery."
Today's Apple event contained a number of newsworthy announcements--a new digital-album format, precut ringtones at $1.29--but what's more striking is the way that the company really focused the improvements on the iPod Nano.
The Nano was the only Apple device that got a significant overhaul, with a video camera, FM radio, voice recorder, and pedometer. Somewhat surprisingly, the more expensive and higher-end iPod Touch isn't getting a refresh this time around. It still lacks a video camera and built-in FM radio.
Strategically, this makes sense: on stage, Steve Jobs claimed that the Nano has sold more than 100 million units, making it the most popular MP3 player in the world. It occupies the sweet spot in price, between $100 and $200 (the new 8GB version will be $149, while the new 16GB version will cost $179).
Last year, Apple hardly updated the Nano at all, besides introducing a few new colors. So to keep its firm hold on the midmarket, Apple was smart to add a few checklist features, particularly the video camera, which suddenly makes the Flip look overpriced.
At the low end, the Shuffle got a price cut to $59 for the 2GB version or $79 for the 4GB version, but this seems expensive, compared with SanDisk's Sansa Clip+, which costs $40 for a 2GB or $50 for 4GB, and includes an FM radio, small screen for navigating menus, and expandable memory via a microSD slot. Here, Apple seems to be relying on the iPod brand to carry it.
At the high end, the iPod Touch remains one of the most exciting devices on the market--it's basically redefining portable computing, thanks to its Wi-Fi connection and Apple's massive App Store. But as a pure MP3 player, I still think that there's room for competition.
Microsoft's forthcoming Zune HD might grab some hard-core music fanatics, thanks to its built-in HD radio (more stations), all-you-can-play subscription service, and (in my opinion) better navigation scheme that lets you get to more of your music more quickly. The Zune HD also looks like a better deal on a straight-memory basis--the 16GB version will cost $220 (only $21 more than an 8GB iPod Touch), and the 32GB will cost $290, which is $9 less than the equivalent iPod Touch.
If I were shopping for an MP3 player today and had less than $100 to spend, I'd buy a Clip+. If I had between $100 and $200, the iPod Nano is the obvious choice. If I had more than that, I'd have to weigh whether I'm more interested in a broad range of apps (iPod Touch) or music (which might sway me to the Zune HD).
For the past several years, Apple has gathered in September to launch its newest iPod products for the holiday-shopping season.
(Credit:
Apple)
Rumors have been circling for some time that Apple would refresh its iPod lineup this fall--and that cameras would be coming to the iPod Nano and iPod Touch models. And a September 9 event is all but confirmed. A Wednesday report by AppleInsider "can independently confirm" from "people familiar with the matter" the date and the expected iPod updates.
AppleInsider didn't cite sources for the rumor confirmations but said it "has it on authority." Along with Boy Genius Report and other rumor sites, AppleInsider has also speculated that iTunes 9 will debut in September and add social networking to the music organizer, among other changes.
A new digital-album format is also expected to debut in September. Code-named Cocktail, Apple's new album format is rumored to include photos, lyric sheets, liner notes, and clips from music videos.
It also seems clear at this point is that an Apple tablet will not make its debut during the September event.
It's been widely rumored that the next version of the iPod Touch and iPod Nano to be released by Apple will have cameras inside. Now, a series of photos from Chinese iPod case manufacturers suggest that it's more than just speculation.
Cases purported to be for new iPods with cameras.
(Credit: Cult of Mac)The Cult of Mac blog has obtained a stack of photos of what it describes as "the worst-kept secret in China." The images show multiple case designs for an iPod Touch and an iPod Nano with notches out of the material, which suggest a camera, much like the way cases for the iPhone accommodate that device's shooter.
For the iPod Touch cases, the camera slot is centered--unlike the iPhone's--while the Nano case camera slot is situated toward the bottom on the left. The Nano also appears to have a wide-screen display.
Most Apple observers anticipate the company will hold its annual iPod and music event in September, where in addition to a camera, the iPod Touch is expected to be updated with a microphone and digital compass as well.
One of the features that iPod Touch users have been requesting from Apple is a camera. According to reports, they may be getting their wish.
Apple's iPhone 3GS still-camera autofocus feature.
(Credit: Apple)While attributing its information only to a "sources in Asia," TechCrunch claims that Apple has placed an order for camera modules destined for the next version of the iPod Touch. The size of the order, according to TechCrunch, is "massive."
MacRumors is taking the camera information a step further, claiming that both the iPod Touch and iPod Nano will receive cameras when they are updated. New case designs, purportedly for the iPods, show a hole for the camera.
This isn't the first time rumors of iPods getting a camera have come up. In May, AppleInsider said that iPods would get cameras similar to those found in iPhones.
At this point the only handheld device from Apple with a camera is the iPhone. All three models of the iPhone come with a one.
In addition to its 3-megapixel still camera, the iPhone 3GS includes video recording and basic video-editing software, which allows chunks of video to be uploaded to YouTube or MobileMe.
Apple has reached a $22.5 million settlement agreement in the class action iPod Nano scratch lawsuit and potential claimants began receiving settlement notices this week, according to the plaintiffs attorney.
The lawsuit, filed in October 2005 in a California Superior Court in Los Angeles County, alleges Apple's iPod Nano is prone to scratches and its alleged defects were not disclosed by the company.
A $22.5 million cash settlement agreement was reached in late October and a court has preliminarily approved the agreement, said the plaintiffs attorney. But it wasn't until this week that notices of the settlement agreement began going out to the potential pool of claimants, estimated to be a few million people.
A court hearing is scheduled for April 28 for final court approval on the settlement agreement.
Under the settlement agreement, potential claimants must have purchased an iPod Nano that was subject to scratches that affected the enjoyment of using the media player device, or impaired its operation.
Users who opt to file a claim may be eligible to collect one of two types of payments.
Tier one payments of $25 per iPod Nano purchased, may be distributed to claimants who did not receive a free slip case when they originally purchased their iPod Nano.
Tier two payments of $15 may be distributed to users who received a free slip case with their original iPod Nano purchase.
Those payment figures, however, may shift in one direction or the other, depending on how many users file a claim.
If there are additional funds leftover, after all tier one and two users file a claim, then the remainder will be distributed to those claimants--but that additional payout will be capped at 150 percent of the type of tier they filed under. And any money left in the fund after those additional payouts will be award to charities.
But if the number of claimants outstrips the $22.5 million fund, then the payouts will be reduced on a prorated basis.
Apple declined to comment on the settlement agreement.
However, on the lawsuit Web site, Apple denies all allegations in the lawsuit and in the class action, noting it is "entering into this settlement to avoid burdensome and costly litigation. The settlement is not an admission of wrongdoing or an indication that any law was violated."
Apple is selling a 4GB version of the new iPod Nano, shown here, in certain areas of Europe.
(Credit: CNET)Apple appears to be selling a 4GB version of its new iPod Nano in Europe, but not in its home market.
Engadget noticed that 4GB Nanos in the new color scheme were appearing on store shelves in the Netherlands, and The Register was able to confirm with an Apple representative that a "limited number" of the smaller iPod Nanos are being sold in various markets.
Apple introduced 8GB and 16GB versions of the new iPod Nano last week during its annual September iPod event.
According to the reports, the 4GB model costs 120 euros, or $170.57, as compared to the $149 you'll pay for the 8GB model on Apple's online store. Yeah, I can't make sense of that pricing strategy, either.
Apple CEO Steve Jobs unveils a redesigned iPod Nano at last year's September iPod event. This year's is Tuesday.
(Credit: Ina Fried/CNET News)Other than football fans, there are probably few people in America happier to see the month of September than Apple executives.
Apple will look to put the last six weeks behind it with the expected launch of new iPods this week during one of its trademark media events in San Francisco on Tuesday. This summer, the company received a stark reminder that while its singular ability to produce a technology event still generates buzz, the products must match that hype.
The rumors regarding this particular launch event, Apple's fourth September iPod-related event in as many years, have been fairly consistent and sensible. We expect new iPod Nanos that do away with the ugly squat design, a revamped iPod Touch at a lower price, a higher-capacity iPod Shuffle, and a possible grab-bag item from the MacBook/Beatles/iTablet bin.
Those products aren't quite as ambitious as the iPhone 3G, or the MobileMe service, the launches of which went somewhat awry this July. But in a way, perhaps they are more important, because the iPod represents Apple to more people around the world than any other Apple product by far.
Ever since CEO Steve Jobs stunned a September 2005 crowd with the unveiling of the super-slim iPod Nano, Apple's ability to (mostly) follow through on the hype generated by its events has turned the company into a tech powerhouse.
More than any of its rivals, Apple has managed to continuously release products that are hip, stylish, easy to use, and functional (we'll forget about the iPod Hi-Fi for the purposes of this discussion). It's why Apple has the best consumer satisfaction scores by far in its industry, and why the Mac and the iPhone are hot sellers.
But for a company so skilled at one form of communication--the carefully orchestrated product release--Apple has had a hard time this summer connecting with disgruntled customers.
A chink in Apple's armor has surfaced: its secretive nature creates a mystique around the company when the products are excellent, but that same communications strategy makes it appear aloof and indifferent when customers are angry over product glitches.
Apple has been forced to give away two months worth of MobileMe subscriptions in order to try to make up for the debacle that was the migration from .Mac to MobileMe, an Internet service that's designed to let you share data between Macs, PCs, and iPhones. And it's scrambling to patch perhaps its buggiest software release in years, the iPhone 2.0 software, which has produced a laundry list of problems, such as fuzzy reception, persistent application crashes, a laggy keyboard, and the bizarre "iPhone cubism" camera issue.
Apple employees and customers mill about during the iPhone 3G's glitch-filled launch. Apple needs a problem-free rollout from the expected new lineup of iPods.
(Credit: Tom Krazit/CNET News)Thankfully for Apple, none of these issues seem to have really affected sales as of yet. Mac sales are growing at a rapid pace, and new notebooks arriving in relatively short order should help that trend continue. And despite all its glitches, the iPhone 3G is selling briskly; expect Jobs to reveal just how many Apple has sold to date during a week in which the mobile industry is gathering in San Francisco for the CTIA Wireless IT and Entertainment Show.
So if the new iPods live up to Apple's usual standard for its products, Apple should be able to shrug off the months of July and August, and get ready for the last quarter of the calendar year, which is usually a blowout one for the company.
In any event, it's not like there is any other company pushing Apple in the personal-music player market these days. Microsoft's new Zune player made an appearance last week without provoking a stampede to Best Buy. While some old foes have made a little noise in recent months, few other competitors seem all that interested in taking down the 800-pound gorilla of the MP3 player market.
Expect the usual dog-and-pony show on Tuesday as Apple shows off its latest batch of iPods, perhaps augmented by some hip cool rock band all the rage with the kids these days. But watch the pace of iPod sales following the event to see if Apple has truly moved past its summer of woe and regained its launch event magic.
For the first time in a long time, even die-hard Apple fans may be thinking twice about being the first on their block to snap up Apple's latest offering.
Update 11:57 a.m. PDT: Added a paragraph on iTunes 8 and iPhone 2.1.
Tuesday's Apple event can't come soon enough for the gazillions of people eager to find out what the company has in store.
Could this be the iPod Nano that everyone's been expecting?
(Credit: MacNN)Hence, the latest rumor/hint/supposition: The Web site MacNN says it has confirmed that there is indeed such a thing as the fourth-generation iPod Nano, which has long been suspected as one of the highlights of Tuesday's "Let's Rock" event. It also has what is says is a "verified authentic photo" of the device.
The supposedly imminent new iPod Nano, MacNN says and shows, sports the previously reported long, lean, tapered look, along with an aluminum skin. The photo on the site shows a copper-hued music player encased in a protective plastic display housing.
Engadget, meanwhile, is offering up a picture of an unboxed alleged iPod Nano, in lime.
And a bit later on Saturday, we spotted an item on Ars Technica's Infinite Loop, wherein it is reported, according to a source close to the situation, that iTunes 8 has been confirmed for the Tuesday event, and, according to another source, that iPhone 2.1 will be released that day.
CNET News will be live-blogging from Tuesday's shindig, so check back starting at 10 a.m. PDT that day for up-to-the-minute reporting on Apple's actual unveilings.
Expectations are running high that Apple next month will bring out new iPod models.
Certainly, September has a solid track record as the month that Apple favors for its iPod launches. And as my colleague Tom Krazit pointed out the other day, drawing on a report on AppleInsider, some inventory management changes at retailer Target lend credence to the notion of old iPods giving way to new iPods next month. Tom has also pointed to reports of a potential redesign of the iPod Nano.
Blogger Kevin Rose offers this photo of what he says is the redesigned iPod Nano.
(Credit: Kevin Rose)Against that backdrop, we bring you to today's tip sheet, the blog of Digg founder Kevin Rose. His take: "Sometime between now and the end of next month, Apple's going to be refreshing quite a bit of their iPod line."
Rose offers some details on what he says will be coming, though he doesn't provide any info on his sources. The Nano, he says, will see a significant redesign, with a shift to a longer, skinnier case. As it happens, that matches up with design murmurings from earlier in the summer. The iPod Touch, meanwhile, will see just cosmetic changes, Rose reports.
The Touch will be the first, he says, to have the 2.1 software, after which Apple will bring that software to the iPhone. The world will also see the arrival of iTunes 8.0--"a true point upgrade," according to Rose.
Price cuts are on the way for the iPod line, too, to avoid cannibalization from sales of the $199 iPhone 3G, Rose says.
And will OS X 10.5.6 include Blu-ray support? Could well be, Rose reports.





