High hopes for Macworld

If the rumor sites are even half right, Apple Computer is about to release a bumper crop of gear.

Among the products Apple CEO Steve Jobs is expected to introduce at the Macworld Expo in San Francisco this week are a flash memory-based iPod, an office productivity software package called iWork and a low-end iMac in the $500 price range.

Historically, Macworld has been Apple's prime venue for presenting new products. It was at Macworld Expo in 2002, for example, that Apple debuted the original flat-panel iMac. More recently, the company has tended to spread out its product launches, in part to keep the shelves of its retail stores fresh. This year may represent something of a return to the old style.

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What's new:
Apple is expected to unveil a flurry of gear at this year's Macworld: a flash memory iPod, an office productivity software package called iWork and a low-end iMac.

Bottom line:
This year's Macworld is opening to feverish anticipation. With Apple riding high on the monumental success of the iPod, Wall Street is hoping the company can convert some iPod buyers into Mac users.

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Piper Jaffray analyst Gene Munster said the hype for this year's Macworld is particularly strong, coming not only from Mac fans but from Wall Street and the mainstream media. "It's through the roof," he said.

Apple stock, which has steadily risen in the past year, soared further in the first days of 2005, nearly touching $70 a share. Much of the enthusiasm has come from skyrocketing iPod sales, with analysts projecting that the company may have sold 4 million of the personal music players during the holiday shopping season.

With the Macworld announcements, Wall Street is looking for Apple to prove that the iPod is not a one-hit wonder and deliver on predictions that it will convert some iPod buyers into Mac users. A low-end Mac could help Apple in those efforts.

Rumors always swirl before Macworld, but this year, legal maneuverings by Apple give the hearsay more bite. The company has sued several unnamed people for leaking information and has also taken legal action against one of the sites itself.

In the latter lawsuit, Apple specifically calls out Think Secret's articles on iWork and the sub-$500 G4-based iMac, as well as updates to iLife and a new music device code-named Asteroid that would allow musicians to plug their analog instruments into a Mac.

Apple claims in its lawsuit that the postings contain Apple trade secrets, though specifics are not given. Apple has declined to comment on which products it will roll out at Macworld.

While the suit indicates that Apple is working on such products, nothing in the suit states specifically that the gear will be introduced at Macworld.

		Abuzz about Macworld High hopes for this year's Apple show include a low-end desktop and a flash-based iPod. Here's what could be on the agenda: Apple office software seems likely (Jan. 4, 2005) A new iMac for under $500? (Dec. 31, 2004) Will Apple flash iPod rock market? (Dec. 20, 2004) Apple details plans to Spotlight desktop search (Nov. 10, 2004) Apple strikes cell phone music deal (July 26, 2004)

In addition to the lawsuit, there are other indications that the iWork rumor, in particular, is true. Apple has trademark applications pending for both iWork and Pages, the name of the word-processing program the company is said to be preparing. Also, small Mac developer IGG Software changed the name of its iWork application to iBiz. According to Think Secret, iWork would consist of Pages as well as a revamped version of Keynote--Apple's presentation program.

A $500 Mac would represent a bold move for Apple, which has largely stayed out of the low-end PC market in recent years.

The current low-end Mac is the eMac, an all-in-one built around a 17-inch CRT monitor that sells for $799. The rumored new model would come without a monitor.

A flash-based iPod, though widely expected for some weeks now, also represents a big departure for Jobs, who, in the past, criticized flash MP3 players as devices that people buy but never use. Since Jobs made those comments last year, however, flash memory prices have continued to fall, paving the way for devices that can hold far more than the hour or two of music typical of such devices.

Such a player would also help Apple keep building on its tremendous growth for the iPod line, whose sales seem to double every quarter. Bear Stearns analyst Andy Neff said in a research note last month that Apple could sell 6 million flash iPods in the current fiscal year and 13.5 million the following year.

Think Secret said Apple is likely to introduce a 1GB player for $149, with a 2GB version also quite possible.

Jobs could also show off the first iTunes-compatible phones, developed as part of a partnership with Motorola. Motorola execs discussed the phone at last week's Consumer Electronics Show in Las Vegas, and Apple executive Eddy Cue said last month that Apple was pleased with progress on the phones, which are due out in the first half of this year.

Apple is expected to update its iLife suite,

No More Soundtrack?

Wow. What a bummer. I wonder if they're going to introduce something else instead.

[Jonathan]

Apple better have a Headless iMac or...

With this much expectation they had better announce it or their stock is going to go through the basement and probably end up showing up in mole people's area of the center of the Earth. That and there will be a lot of pissed off wanna-be switchers who would be interested in such hardware. Me being one of them even though I wouldn?t really be switching. More of a merging.

why?

Getting upset because of a(as of yet) unsubstantiated rumor; and getting mad at a company for somethng they are not responsible for, is more then a bit silly.