Steve Jobs unveils upgraded Apple TV, new iPods
Apple revamped its iPod lineup, unveiled an upgraded Apple TV that will feature streaming shows and movies, and launched a new music social network Wednesday.
While many of the improvements were expected, they signaled a renewed push by Apple to compete in the living room and remain dominant in portable media players.
At a packed media event in San Francisco, Apple CEO Steve Jobs showed off a $99 Apple TV set-top box that will deliver shows from Fox and ABC for 99 cents, as well as a collection of high-definition movies for $4.99.
Unlike its $229 predecessor, the new Apple TV will not have any internal storage and will deliver only streamed content from either Apple or from a user's computer. Apple TV, which will also feature Netflix, will go on sale in four weeks.
The move pits Apple against a bevy of companies with set-top boxes including Roku, Boxee and Google, which is set to launch Google TV soon. Jobs himself has been skeptical of the market in the past, famously calling Apple TV only a "hobby."
Jobs also rolled out a new social networking service called Ping that will be available through an upgraded version of iTunes 10, Apple's music software and delivery system. Users will be able to create a profile, follow friends and artists, and share their musical tastes with others. Ping will be available only through iTunes and the iTunes app on Apple mobile devices.
"It's like Facebook and Twitter meets iTunes," Jobs said. "It's a social network all about music."
Ping, along with Game Center, Apple's new online system for mobile gaming, represents a major effort by Apple to tap into the interest in social networks and interactive communities.
"It's a good opportunity because social is clearly important and has a lot of buzz these days," said analyst Van Baker of Gartner Research. "This is important because it enhances the value of iTunes and keeps customers happy."
The bulk of the announcement was given to iPod improvements, which spanned three different models.
The iPod Touch, Apple's high-end media player and Internet device, received many of the components of the iPhone 4, including a high-resolution "retina" screen, a powerful A4 processor, two cameras and the ability to run FaceTime, Apple's mobile video chat service.
The iPod Nano, meanwhile, was shrunk down and given a petite 1.7-inch screen and small square enclosure. The device has lost the click wheel and the video playing and capture features of its predecessor but gains multitouch input.
The smallest iPod, the Shuffle, reverted to its previous square form with buttons after a short time in which the device was sold in a tiny body without any buttons.
"This is the biggest change in the iPod lineup ever," Jobs said.
The iPod Touch will sell for $229, $299 and $399 for 8-, 32- and 64-gigabyte versions, while the iPod Nano will sell for $149 and $179 for 8-GB and 16-GB models. The iPod Shuffle will sell for $49 for a 2GB unit. All of the units go on sale next week.
Michael Gartenberg, an analyst with the Altimeter Group, said Apple is making a strong but measured push into the living room with Apple TV. He said the company is working in phases to teach users Apple's way of relating to the TV.
"At $99, it's much more of an impulse purchase and given Apple's retail experience and Apple's marketing machine, consumers will start understanding Apple TV," he said.
Baker, the Gartner analyst, questioned whether Apple TV will ever become a mainstream hit for Apple on the order of its other successes. He said Apple still faces too much competition from incumbent cable providers, who are the preferred video provider for most consumers.
"The only way to (succeed) is to have the paid TV services break, but that won't happen anytime soon," he said.
9/01/2010 10:43:00 PM
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