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).
Very few people have sat out the iPod revolution.
At least, very few people who read CNET News.com and took the time to answer a poll about iPods, that is. Last week we asked readers to participate in an iPod survey to help inform a separate story on the future of the iPod, which ran over here.
A few disclaimers: this survey was not sanctioned by The Official Group That Makes Surveys Officious, and should not be viewed as a competitor to data complied by professional survey companies or market research firms. I think it is more representative of CNET News.com readers than the general public, meaning that I think we drew from a group more enthusiastic about technology than the average consumer. And 83 percent of the responses came from U.S. computers.
There were many interesting tidbits, some of which I discussed in the other story, and some of which didn't quite fit in with that piece. Here's a look, and I'll also put down my answers:
The majority of people who responded to the poll were conservative iPod buyers. I myself have owned two, an iPod Mini and an iPod Nano. I was a little surprised by this, especially given the results of the next question. Just 341 people claim to have never owned an iPod, and that 8 percent figure was consistent throughout the survey.
This says to me that people are holding onto their iPods longer than I would have assumed. There have been lots of iPod revisions since 2003 and 2004, including the Nano and video iPods most notably. Perhaps the 2003-2004 respondents have had two iPods, and the 2005-2006 respondents have had one? My first iPod arrived for Christmas 2004.
These two charts suggest that most people's iPods have sent out to pasture, rather than dying on the battlefield. But it still seems high to me, although it didn't have much of an impact on people's perception of the iPod: 84 percent said they'd buy another one. For the record, I've never had any problems with either iPod I've owned.
Other results
On the subject of other MP3 player companies, 36 percent claimed to have never owned anything but an iPod. Creative and Rio ranked first and second among the other manufacturers, although "Other" was tied with Creative, suggesting I forgot someone notable. I owned a Rio before buying my first iPod.
We had more Mac users respond to the survey than Windows users, which surprised me a bit. Forty-nine percent of respondents used a Mac to manage their iPod, compared with 41 percent of respondents who used Windows. And of those who own both an iPod and a Mac, 36 percent said they bought the Mac first, throwing a bit of a wrench into the halo theory. I use my Mac, obtained after my iPod, to manage my player.
Finally, 43 percent of respondents said they aren't considering another MP3 player company. But of the 57 percent who said they would consider another company, Microsoft's Zune topped the list, followed closely by Creative and Sony.
The latest version of financial analyst firm Piper Jaffray's biannual survey of high school students and technology states the obvious, but also contains some interesting tidbits.
(Credit:
Disney)
Let's get the "duh" stats out of the way first. In case you were unaware, the survey confirms that Apple is a big player in the portable media player market. Eighty percent of students surveyed by Piper own a portable music player, and 82 percent of those own an iPod of some type. Of those planning to buy a music player in the next year, 78 percent plan to buy an iPod.
Unsurprisingly, high school students also seem undeterred by the RIAA's campaign against file sharers. Eighty-two percent of students are downloading music, and almost two-thirds of those who obtained music online did it through a file-sharing service, according to Piper. That's down somewhat from two years ago, when 80 percent of students obtained online music through P2P networks, but it's still pretty high.
Some of the more interesting stats were buried in the tables. For example, Microsoft's Zune player has shot up to become the clear second-favorite behind the iPod, although it still trails by a large margin. Thirteen percent of those looking to buy a music player in the next year say they'll buy a Zune. But, as expected, that's not coming at the expense of the iPod. In the spring, 73 percent of students looking for a music player said they wanted an iPod, and now 78 percent want one. Sony's the big loser, as only 4 percent of students now want one of Sony's music players, down from 11 percent just six months ago.
Those who purchase music legally online are actually doing less of it with Apple than six months ago. Apple's share of the high school student market--at least those willing to pony up for their music--fell from 89 percent in the spring to 79 percent in the latest survey. Piper thinks that might be because other services now offer DRM-free tracks and because the P2P downloading continues, although since the more profitable iPod continues to be popular, they figure Apple's in decent shape.
And of course, this post wouldn't be complete without an iPhone mention. Three percent of students reported owning an iPhone, and just 9 percent said they plan to buy one in the next six months. That's probably because the average age of those surveyed was 16.4, and most kids at that age don't have $399 to spend on a mobile phone unless Mom and Dad are feeling generous.
Piper didn't cover Macs, but college students might be a better estimate of what's going on in that area. Princeton students are apparently snapping up Macs, according to the student newspaper, and that also seems to be the trend in Minnesota, Connecticut and Missouri. The annual back-to-school shopping season fell during Apple's fourth quarter, which ended in September, and when the company reports earnings in two weeks we might get a better sense of just how widespread that trend has become.
Piper, which tells anyone who will listen to buy Apple stock, surveyed 980 students about a wide variety of purchasing habits, and 800 students at 11 high schools specifically about digital music and the iPhone.
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