The IPTV craze of last year seems to have morphed itself into the WebTV world resulting in a deluge of devices being hyped at CES including the Apple iTV.
Point to note is that inspite of all the hype IPTV is yet to see any significant deployment globally yet ! Might be a different story for WebTV as no evolution/upgradation of the network is required here as also no specific content format.
Battle of the Web-TVs
This year's CES featured a slew of set-top boxes designed to unite the Net and TV, bringing both Web and on-demand shows to the little screen
Technology companies have long envied TV's place at the center of the home. They have encroached upon it with video game boxes and tried, in vain, to replace it with big monitors attached to powerful multimedia PCs. This week, at the annual Consumer Electronics Show in Las Vegas, technology companies finally unveiled the Internet-connected TV set-top boxes that are the key weapons in their bid to control the living room.
Seemingly every major tech company ever to enter gaming, computers, or entertainment unveiled a device at CES intended to unite the Internet and television without tethering the TV to the computer with a cable. The list includes iTV maker Apple, Advanced Micro Devices, Microsoft, and Sony, among others.
The idea is not entirely new. Akimbo, a privately held company based in San Mateo, California, partnered with RCA several years ago to develop a set-top box that brings on-demand Web programming to the TV. On Jan. 10 Akimbo announced a partnership with Yahoo! that will bring the highest-rated user-generated videos on Yahoo!'s site to its on-demand service.
Changing More than Channels
While none of the "smart TV" devices have any significant market penetration yet, the sheer number of them shows that tech companies believe they can win the living-room rumble for dominance. If they're right, consumers can expect some big changes to how they watch TV that should go far beyond the ability to view YouTube videos on CBS. (The TV network announced a partnership with YouTube Jan. 10 that will enable computer users to vote for which user-generated video should air during the Super Bowl.)
Web-enabled TV devices will encourage content providers to create more interactive programming. Think of shows that, with the click of a remote-control button, pull up screens with DVD-like bonus features available via the Web, or allow users to select an alternate ending for a television show. Already cable operators such as Time Warner Cable are experimenting with such programming. The company held interactive voting for the show Last Comic Standing" that allowed viewers to select their favorite comic via remote control. The results helped pick the winner.
Perhaps the largest change brought about by increased Web/TV connectivity will be the availability of more on-demand programming. The appearance of digital videorecorders such as TiVo helped spur the on-demand trend by enabling audiences easily to save shows without the hassle of complex VCR programming. Most U.S. TV viewers, however, don't regularly use DVRs. Research firm eMarketer estimates that less than 16% of U.S. households had DVRs by the end of 2006.
Consumer Control
So it wasn't until the explosion of video on the Web this past year that American audiences grew accustomed to getting media at their convenience, says Showtime's Laura Palmer, a vice-president for distributor marketing who handles the cable network's on-demand experiences.
At CES, Showtime announced a deal with Microsoft to offer its Web programming on TV sets. "The Web spawned that sense that the consumer experience was all about control," Palmer says. "The next step was to have that on your TV."
Television networks got into the on-demand act in a few ways. First, they began offering clips on Internet video-sharing services, such as Google's YouTube, to hype shows. Then the major networks began offering full programs on-demand via Web channels, often just hours after the shows' initial air date. The on-demand Web programs served to keep viewers who might have missed a show up to date as well as to deliver additional advertising to new Web audiences.
Some television networks, particularly premium subscription networks such as Showtime and HBO, also began offering more on-demand programming through cable TV providers. Time Warner Cable, for example, partnered with Gotuit Media in several markets to provide an on-demand station that allows viewers to search for music videos and other content, as well as for specific points in videos such as the goals in a recent soccer match.
Gotuit President Mark Pascarella believes on-demand will eventually become the dominant method people use to watch TV series. "We are at the beginning of a fundamental shift in the way consumers watch television," says Pascarella. "On-demand will rule everything with the exception of live sports and news."
Freeing Up Content
However even Pascarella—whose company offers both on-demand programming and related advertising—concedes that such a future remains several years away. The delay? On-demand content, which still represents only a tiny fraction of the cable networks' total programming. Devices that make it easier to bring online shows to the TV could increase the amount of on-demand content available. However, even if everyone had such devices today, users still would not be able to comfortably view much of the available content because it is not formatted to fit TV screens.
This is partly deliberate. The major television networks have offered their content in a streaming format, not for download. The data from downloads are typically fully retrieved from the Web source and stored on a user's home computer before viewing. Thus they can easily be watched on TVs connected to computers via cable cord or, potentially, through one of the new, set-top devices.
Streams, on the other hand, demand that devices receive data, translate them into the corresponding images and sounds, and then resize them to fit the screen in real time. Thus it's far harder for computer users to watch streams on their home TV screens because their Internet connection and devices typically aren't fast enough to continuously receive, translate, and resize new data in real time without losing significant quality.
Advertising Models
By delivering their on-demand programming in streams, TV networks ensure that users still do not own the content—thus keeping the on-demand Web programming from cannibalizing their DVD market for prime-time shows. Streams also enable networks to prevent most users from watching their shows on demand over their TV set. This is important because, while users may want to watch the occasional show online, real fans still opt to see it on the bigger home screen when it airs. That's what the TV networks prefer since they still sell the majority of advertising based on who is watching the show during the broadcast.
Jim Funk, vice-president for marketing at Akimbo, says the industry is slowly trying to figure out how to deliver on-demand, ad-supported content on the Web without cannibalizing its TV audience and potentially losing money from the more limited amount of advertising attached to Web broadcasts. "The industry is very new to making this all work and the networks and content owners are working to figure out what makes the most sense for their business," says Funk.
A key advantage to on-demand Web programming is that it prevents users from fast-forwarding through advertising, helping the industry counteract the effects of DVR, which allows users to zip through commercial breaks. Some analysts estimate that as much as 40% of American households with TVs could have DVRs by the end of 2007.
First Step: the Device
David Hallerman, an analyst at eMarketer, is confident the networks will find a way to make on-demand content sufficiently profitable to offer more of it in a format that can be viewed on the television screen. He thinks that soon viewers will see networks attach more commercials to their online content, though the commercials may be shorter than standard TV ads. More advertising dollars will mean more willingness from networks to offer online, on-demand content in a format viewable on most TVs plugged into the Net.
However, before the on-demand revolution arrives, Hallerman says, new Internet-enabled TV boxes "will have to become ubiquitous and cheap first."
Thursday, January 25, 2007
LG's Q4 2006 Results - Market Share and Margins Slide
Another one bites the dust ! - Joins the league of Motorola and Samsung in reporting poor results in the fiercely competitive terminals business. Time for another round of consolidation ? I would think so in the next 12-24 months.
LG's Q4 2006 Results - Market Share and Margins Slide
While the overall handset market grew about 20% in unit terms last year, LG reported selling only 5% more handsets during Q4 2006 than it did a year earlier, growing substantially slower than the handset market and causing a market share loss and thus falling further behind number four Sony Ericsson. LG's approximate market share for Q4 was 5.8%, a decline from 6.6% a year earlier. This is LG's lowest market share since the first quarter of 2004, when the company had about 5.6% share. (For so many quarters in a row, there was a struggle between Sony Ericsson and LG for the number four spot.)
LG's operating profit margins on handsets fell to 2.7% from 3.7% in the previous quarter. This is the lowest among the top five vendors. Like Motorola and Samsung, LG said it was forced to cut prices on key models due to the competitive environment.
Despite a very aggressive marketing push in the U.S. and Europe, the company's Chocolate handset never became a RAZR-like global blockbuster hit some had expected. According to GfK, Chocolate was the 21st best-selling model in the EU during November. In the U.S., Chocolate was number 27 during November according to research firm Telephia, dropping 10 places from the previous month. LG was not able to establish itself as a maker of a major iconic handset in either market.
LG's overall corporate profits were down 85% from the previous year, as the company was also forced to cut prices on other product lines such as TVs.
LG's Q4 2006 Results - Market Share and Margins Slide
While the overall handset market grew about 20% in unit terms last year, LG reported selling only 5% more handsets during Q4 2006 than it did a year earlier, growing substantially slower than the handset market and causing a market share loss and thus falling further behind number four Sony Ericsson. LG's approximate market share for Q4 was 5.8%, a decline from 6.6% a year earlier. This is LG's lowest market share since the first quarter of 2004, when the company had about 5.6% share. (For so many quarters in a row, there was a struggle between Sony Ericsson and LG for the number four spot.)
LG's operating profit margins on handsets fell to 2.7% from 3.7% in the previous quarter. This is the lowest among the top five vendors. Like Motorola and Samsung, LG said it was forced to cut prices on key models due to the competitive environment.
Despite a very aggressive marketing push in the U.S. and Europe, the company's Chocolate handset never became a RAZR-like global blockbuster hit some had expected. According to GfK, Chocolate was the 21st best-selling model in the EU during November. In the U.S., Chocolate was number 27 during November according to research firm Telephia, dropping 10 places from the previous month. LG was not able to establish itself as a maker of a major iconic handset in either market.
LG's overall corporate profits were down 85% from the previous year, as the company was also forced to cut prices on other product lines such as TVs.
Friday, January 19, 2007
DVB-H ready to take off, but market demand lacking
I personally am very bullish on Mobile TV services - The bundle of broadcast, unicast/on-demand coupled with interactive and advertising services.
Initial demand is likely to be constrained due to lack of a wide supporting handset portfolio, cost of handsets and nature of content.
Other issues that remain revolve around the business model, pricing and packaging, form factor of termnial and frequency availability
DVB-H ready to take off, but market demand lacking
Industry enthusiasm and support for mobile TV will drive DVB-H development to a level that could make the technology a standard comparable to GSM, according to analysts at Frost & Sullivan.
The firm says that the DVB-H market generated US$60 million in revenues last year and is likely to bring in US$2 billion by 2010. DVB-H is intended to be the de facto standard for European mobile TV services, and in December, Germany reportedly approved a national mobile-TV program based on the technology.
UK incumbents 3, O2, Orange, T-Mobile and Vodafone reportedly want to bid for spectrum that will be freed up after the 2008 analog-TV switch-off, so they can use it in their DVB-H services. Nokia has said it expects that more than 50 million DVB-H devices will be sold globally by 2010.
However, despite Frost & Sullivan's research, mobile-TV offerings are struggling to take off in the market place. Virgin Mobile UK launched its mobile TV service last October but has only managed to acquire 7,000 users.
"We've signed up 7,000 users and we are really pleased with that, considering this is a new technology and the first device [the DAB-IP-enabled Lobster Phone] that has got such a service on it," a Virgin Mobile spokesman told GM Daily today. "We are not the biggest network in the world. It's not a well-known brand that manufactured the handset. Still, that is 5% of the global number of iPods sold up to its first Christmas."
Virgin's mobile TV service is a joint venture with telco BT, which provides its BT Movio DAB mobile TV platform.
Mobile TV services were also having little impact in the Canadian market, despite significant investment, said analysts at Deloitte. Deloitte speculate that this trend will continue into this year. However, Deloitte said that shorter TV clips, of around five minutes long, are becoming more popular.
Initial demand is likely to be constrained due to lack of a wide supporting handset portfolio, cost of handsets and nature of content.
Other issues that remain revolve around the business model, pricing and packaging, form factor of termnial and frequency availability
DVB-H ready to take off, but market demand lacking
Industry enthusiasm and support for mobile TV will drive DVB-H development to a level that could make the technology a standard comparable to GSM, according to analysts at Frost & Sullivan.
The firm says that the DVB-H market generated US$60 million in revenues last year and is likely to bring in US$2 billion by 2010. DVB-H is intended to be the de facto standard for European mobile TV services, and in December, Germany reportedly approved a national mobile-TV program based on the technology.
UK incumbents 3, O2, Orange, T-Mobile and Vodafone reportedly want to bid for spectrum that will be freed up after the 2008 analog-TV switch-off, so they can use it in their DVB-H services. Nokia has said it expects that more than 50 million DVB-H devices will be sold globally by 2010.
However, despite Frost & Sullivan's research, mobile-TV offerings are struggling to take off in the market place. Virgin Mobile UK launched its mobile TV service last October but has only managed to acquire 7,000 users.
"We've signed up 7,000 users and we are really pleased with that, considering this is a new technology and the first device [the DAB-IP-enabled Lobster Phone] that has got such a service on it," a Virgin Mobile spokesman told GM Daily today. "We are not the biggest network in the world. It's not a well-known brand that manufactured the handset. Still, that is 5% of the global number of iPods sold up to its first Christmas."
Virgin's mobile TV service is a joint venture with telco BT, which provides its BT Movio DAB mobile TV platform.
Mobile TV services were also having little impact in the Canadian market, despite significant investment, said analysts at Deloitte. Deloitte speculate that this trend will continue into this year. However, Deloitte said that shorter TV clips, of around five minutes long, are becoming more popular.
LG Shows Off Touch-Screen Handset
Another touchscreen phone this time by LG ! Seem to have beaten Apple to it by 6 months. In view of this launch is Apple's touchscreen intuitive UI revolutionary or "5 years ahead" as Steve Jobs proudely proclaimed ? I have my serious reserervations !
LG Shows Off Touch-Screen Handset
Today LG officially confirmed their upcoming LG Prada phone. Featuring a full touch-control design, the new handset is the result from the collaboration between the Korean manufacturer and the Prada design team.
Yesterday at the IF product design awards the LG Prada mobile was first seen designated as the LG KE850. The unique thing about it is the large touchcreen menu interface which eliminates the need for a conventional keypad whatsoever. We cannot help but think about the newly announced iPhone by Apple which though would much larger and would run under the OS X. The LG KE850 Prada phone on the other hand would be only 12 mm run with a Macromedia Flash user interface.
The Prada phone by LG (KE850) would feature a large 3" LCD touchscreen display with yet unknown resolution and would also have a 2 megapixel camera with Schneider-Kreuznach optics and a microSD memory card slot. The most interesting thing about the display itself is that it's made using the capacitive touchscreen technology. What that means is that the screen uses electroconductivity to sense your touch - much like the touchpad on the popular LG Chocolate. This technology is made to be used with fingers only, so the use of a stylus is out of the question whatsoever.
The PRADA Phone by LG will be available with prices starting from 600 EUR in the UK, France, Germany and Italy as of late February, 2007, followed by countries in Asia such as Hong Kong, Taiwan, and Singapore from late March, 2007. The Korean version of the phone is scheduled to launch in the second quarter of 2007.
Friday, January 12, 2007
Live TV set for Verizon cell phones
Like I have always maintained, Mobile TV is likely to be one of the killer Mobile VAS going forward. This is particularly true for markets in South Asia like India where TV and cinema and the primary modes of entertainment.
However, the challenges are plenty today be it likely servive take rates, pricing/packaging, technology maturity, proven business models, cohesive value chain, high cost anf poor form factor of handsets, genre of "sticky" content, etc.
As to my prediction of the "killer" service - Broadcast TV and On-Demand unicast services coupled with interactivity and a tinge of targetted advertising.
I guess these will all get resolved over the next or two as the industry matures and we see more commercial launches of the service.
Live TV set for Verizon cell phones
Verizon Wireless customers will soon be able to watch live TV over a network constructed by Qualcomm Inc.
Verizon will launch its new service, dubbed V Cast Mobile TV, sometime in the first quarter, the company said Sunday at the International Consumer Electronics Show. Verizon said it would release details on pricing and availability closer to the launch of the service.
Verizon also announced an upgrade to its FIOS digital television service that will let users use their cell phone to program their home digital video recorders, change parental controls and perform other functions. Many of the channels on the V Cast service will be live feeds from major broadcast partners, including NBC, CBS and Fox. Recorded full-length programs will also be offered, such as episodes of late-night talk shows.
Two handsets will be available at launch -- one from Samsung and another from LG. More handsets and TV channels are expected to be added by year's end. Verizon is the first wireless carrier to use the network created by Qualcomm Inc. The MediaFLO system broadcasts signals to mobile phones over a different portion of the wireless spectrum than cellular calls and data services.
The phones have dedicated TV keys that launch the service. An antenna can be extended to strengthen the signal. In a demonstration Sunday, the signals were strong and the picture quality sharp, without delays or hiccups caused by buffering data as often happens with video carried over current wireless networks.
The service comes with a program guide and customers can "channel surf" using the phone's keypad. The screens on the phones are about two and a half inches diagonally. The live programming will be available in East coast and West coast feeds. Local programming might be added later, said John Stratton, Verizon's vice president and chief marketing officer. Parental controls are included to block objectionable programs.
The same advertising that appears on the live feed will also appear on the V Cast service, the company said. "We think that potentially the market is very large for this," Verizon president and chief operating officer Denny Strigl told The Associated Press. The market will grow over the next two years, he said.
"We think the advantage we have here is that we are first to market and it is something that will not degrade the existing network that we have."
Samsung Electronics Co. also said Sunday it was working on technology that will become available sometime in 2009, after U.S. broadcasters make the switch to digital TV signals.
The system, called Advanced-VSB, is designed to strengthen the digital signal sent from local broadcast stations so that mobile receivers can lock into it, even if moving at high speed, such as in a car or train, or in cities where buildings and other objects often interfere with the signal.
The system would allow a wide range of mobile TV applications, such as signals sent to a handheld device or a laptop computer, using the same broadcast signal sent to television sets.
Verizon Wireless is a joint venture between Verizon Communications Inc. and Vodafone Group PLC of Britain.
Danish Operator Ready for Mobile TV
Denmark's TDC says that is now ready to deliver its mobile TV service. Six of the most popular Danish television-channels can now be watched live on the cell phone. The channels are DR1, DR2, TV 2, TV 2 News, Kanal 4 and Voice TV.
Currently, mobile television can only be watched in areas covered by TDC Mobile's 3G network. Introduction prices including unlimited use are DKK29 (US$5) per day, DKK49 (US$8.50) per week, and DKK69 (US$12) per month.
"We have seen that consumers want to use their cell phone for television and music, together with all the things they normally use their personal computer for. That is why we recently introduced download of music on the cell phone and now we are ready to take the next step by introducing live television on the cell phone. Both music and television on the cell phone are heavy data services and by developing our 3G network we can ensure a satisfactory quality," explains vice president at TDC Mobile Anders B. Christjansen.
Prior to TDC's launch of mobile television, the market research institute Zapera carried through a survey which showed that 70% of the 725 persons interviewed showed interest in mobile television. People primarily demand news and weather forecast, but also sports and music are preferred, especially during waiting time and during transportation - but also on vacations.
The Mobile World subscriber database estimates that TDC had around 2.7 million customers at the end of Q3 '06, of which some 75,000 were using 3G services, which are necessary for the Mobile Tv service.
However, the challenges are plenty today be it likely servive take rates, pricing/packaging, technology maturity, proven business models, cohesive value chain, high cost anf poor form factor of handsets, genre of "sticky" content, etc.
As to my prediction of the "killer" service - Broadcast TV and On-Demand unicast services coupled with interactivity and a tinge of targetted advertising.
I guess these will all get resolved over the next or two as the industry matures and we see more commercial launches of the service.
Live TV set for Verizon cell phones
Verizon Wireless customers will soon be able to watch live TV over a network constructed by Qualcomm Inc.
Verizon will launch its new service, dubbed V Cast Mobile TV, sometime in the first quarter, the company said Sunday at the International Consumer Electronics Show. Verizon said it would release details on pricing and availability closer to the launch of the service.
Verizon also announced an upgrade to its FIOS digital television service that will let users use their cell phone to program their home digital video recorders, change parental controls and perform other functions. Many of the channels on the V Cast service will be live feeds from major broadcast partners, including NBC, CBS and Fox. Recorded full-length programs will also be offered, such as episodes of late-night talk shows.
Two handsets will be available at launch -- one from Samsung and another from LG. More handsets and TV channels are expected to be added by year's end. Verizon is the first wireless carrier to use the network created by Qualcomm Inc. The MediaFLO system broadcasts signals to mobile phones over a different portion of the wireless spectrum than cellular calls and data services.
The phones have dedicated TV keys that launch the service. An antenna can be extended to strengthen the signal. In a demonstration Sunday, the signals were strong and the picture quality sharp, without delays or hiccups caused by buffering data as often happens with video carried over current wireless networks.
The service comes with a program guide and customers can "channel surf" using the phone's keypad. The screens on the phones are about two and a half inches diagonally. The live programming will be available in East coast and West coast feeds. Local programming might be added later, said John Stratton, Verizon's vice president and chief marketing officer. Parental controls are included to block objectionable programs.
The same advertising that appears on the live feed will also appear on the V Cast service, the company said. "We think that potentially the market is very large for this," Verizon president and chief operating officer Denny Strigl told The Associated Press. The market will grow over the next two years, he said.
"We think the advantage we have here is that we are first to market and it is something that will not degrade the existing network that we have."
Samsung Electronics Co. also said Sunday it was working on technology that will become available sometime in 2009, after U.S. broadcasters make the switch to digital TV signals.
The system, called Advanced-VSB, is designed to strengthen the digital signal sent from local broadcast stations so that mobile receivers can lock into it, even if moving at high speed, such as in a car or train, or in cities where buildings and other objects often interfere with the signal.
The system would allow a wide range of mobile TV applications, such as signals sent to a handheld device or a laptop computer, using the same broadcast signal sent to television sets.
Verizon Wireless is a joint venture between Verizon Communications Inc. and Vodafone Group PLC of Britain.
Danish Operator Ready for Mobile TV
Denmark's TDC says that is now ready to deliver its mobile TV service. Six of the most popular Danish television-channels can now be watched live on the cell phone. The channels are DR1, DR2, TV 2, TV 2 News, Kanal 4 and Voice TV.
Currently, mobile television can only be watched in areas covered by TDC Mobile's 3G network. Introduction prices including unlimited use are DKK29 (US$5) per day, DKK49 (US$8.50) per week, and DKK69 (US$12) per month.
"We have seen that consumers want to use their cell phone for television and music, together with all the things they normally use their personal computer for. That is why we recently introduced download of music on the cell phone and now we are ready to take the next step by introducing live television on the cell phone. Both music and television on the cell phone are heavy data services and by developing our 3G network we can ensure a satisfactory quality," explains vice president at TDC Mobile Anders B. Christjansen.
Prior to TDC's launch of mobile television, the market research institute Zapera carried through a survey which showed that 70% of the 725 persons interviewed showed interest in mobile television. People primarily demand news and weather forecast, but also sports and music are preferred, especially during waiting time and during transportation - but also on vacations.
The Mobile World subscriber database estimates that TDC had around 2.7 million customers at the end of Q3 '06, of which some 75,000 were using 3G services, which are necessary for the Mobile Tv service.
Thursday, January 11, 2007
Apple introduces svelte multimedia iPhone
As always Apple seems to have been successful in creating a huge frenzy leading up to a product launch and keeping expectations with a "wow" product. Its sure to carve a nice for itself in the top-tier multimedia segment.
The only disappointments are the 2 MP camera and lack of 3G support. Support for Java has also not been confirmed
I guess the logical next steps for Apple would be to come out with a cheaper nano i Phone, widen their portfolio with a few more models and pack in new features [Broadcast TV, 3G/WiMax support, etc.]
Apple introduces svelte multimedia iPhone
SAN FRANCISCO (Reuters) - Apple on Tuesday debuted its much-anticipated take on the smart phone, a sleek device with a large screen that combines a phone, an iPod and instant messaging, sending its shares to a record high.
Steve Jobs, Apple's CEO and chief showman, pulled an iPhone from his jeans pocket at the annual Macworld conference and drew a standing ovation at the end of his speech. Investors also cheered, pushing Apple shares 8 percent higher, while those of rival high-end phone makers Palm Inc. and Research In Motion Ltd. fell.
Lacking the diminutive keypads found on other smart phones, Apple's iPhone has a single button and a 3.5-inch (9-cm) touch screen to navigate between playing songs and videos, displaying pictures, typing instant messages or making phone calls.
In a nod to Apple's widening influence in consumer electronics, Jobs said it would drop "Computer" from its name. Most of what Apple Inc. sells now is mobile technology, whether it be iPods or notebooks, which now outsell desktop Macs.
The iPhone is thinner than some of the cell phone industry's sleekest devices, such as Motorola Inc.'s RAZR. It will cost $499 to $599 when it debuts in the United States in June. Sales are expected to start in Europe in the fourth quarter and in Asia in 2008.
Cingular Wireless, the No. 1 U.S. wireless network and a unit of AT&T Inc., has a multiyear, exclusive agreement to provide U.S. service for the iPhone.
HUGE MARKET
Jobs said that in 2008 Apple could sell 10 million iPhones, representing roughly 1 percent of the current annual mobile phone market of 1 billion units a year. Last year, the consumer electronics market globally was worth $145 billion.
"This is a huge market right here," Jobs said in an interview, calling the iPhone "a natural extension of what we've been doing." Gartner analyst Mike McGuire said Apple seems to have backed up Jobs' claim that the company had "reinvented" the mobile phone.
"It's not just candy. These are entirely useful, new ways to use your phone," McGuire said.
The iPhone could hurt the market for other high-end phones such as the "Q," made by Motorola Inc., models from Nokia and Sony Ericsson and music phones from the same makers, analysts said.
Jobs, speaking at the conference, predicted the iPhone would have a similar impact on Apple's fortunes as two previous blockbusters: the Macintosh and iPod.
"Apple has been very fortunate that it has been able to introduce a few of these" hits, he said, referring to the introduction of the Macintosh computer in 1984 and the iPod in 2001. "We are advancing the state of the art in every aspect."
Apple shares rose $7.10 to close at a record $92.57.
The stock rose 18 percent in 2006, after more than doubling in 2005 and tripling in 2004, making it one of the best-performing technology stocks in recent years.
IPOD GROWTH MODERATING
Analysts said iPhone is a potentially huge source of growth as Apple seeks new revenue streams and ways to build on its 70-percent-plus U.S. market share for digital music players.
"I've already ordered two," said Nick Kaiser, president of Saturna Capital. "I don't know what the cost is and I don't care ... The higher it is the more I like it as a shareholder."
While iPods are still selling well, growth has moderated.
In the fourth quarter of its fiscal 2006, Apple sold 8.73 million iPods, up 35 percent from a year before.
In the fourth quarter of fiscal 2005, Apple sold 6.5 million iPods, more than triple in the year-earlier period.
Analysts cautioned, however, that the comparatively high price would keep the iPhone from becoming a mass market hit soon, though the price would almost certainly drop, as with most consumer electronics devices over time.
"This (iPhone) does have the potential to shake up the competitive landscape even if it's not a device that's targeted to mass consumers," said Stanford Group analyst Michael Nelson.
"It's clearly targeted toward the highest-value subscribers and they are the most profitable subscribers."
The iPhone is 11.6-millimeters (0.5-inches) thick, has five hours of continuous talk time and 15 hours for playing music, and includes a camera.
It runs Apple's OS X operating system, has the Safari browser for Web access and e-mail functions that can handle graphics and work with external services.
The iPhone can connect to the Internet wirelessly via Wi-Fi and has Bluetooth, a short-range wireless technology that supports wireless headsets or links to devices like printers.
Separately, Jobs said AppleTV, the newly renamed device for streaming movies, music, photos, podcasts and TV shows to home entertainment systems, would ship in February. AppleTV, which comes with a 40-gigabyte internal hard drive, will cost $299.
Apple has now sold 70 million iPods and consumers have bought more than 2 billion songs for about 99 cents each on iTunes. More than 220 TV shows are also available on iTunes.
Technical Specifications
Screen size 3.5 inches
Screen resolution 320 x 480 at 160 ppi
Input method Multi-touch
Operating system OS X
Storage 4GB or 8GB
GSM Quad-band (MHz: 850, 900, 1800, 1900)
Wireless data Wi-Fi (802.11b/g) + EDGE + Bluetooth 2.0
Camera 2.0 megapixels
Battery Up to 5 hours Talk / Video / Browsing
Up to 16 hours Audio playback
Dimensions 4.5 x 2.4 x 0.46 inches / 115 x 61 x 11.6mm
Weight 4.8 ounces / 135 grams
Here's a quick rundown of the features taken from the minutes of the Jobs' show at MacWorld: Quad band GSM+EDGE, WiFi (unusual for a Cingular device). Bluetooth. No 3G. 2MP camera. No GPS. 8 and 4 GB models. Full 3.5" touchscreen finger input. 160 pixels per inch. Recognized finger motions for commands. Photos calendar and messaging. Strong conf call support and speakerphone. Visual voicemail. iChat functionality. IMAP and POP mail support. Free Yahoo! push IMAP email. Safari browser which can load multiple pages and resize. Accelerometer. Ambient light sensor. 3.5mm headset jack input. Auto syncs content. And of course it works with iTunes.
The only disappointments are the 2 MP camera and lack of 3G support. Support for Java has also not been confirmed
I guess the logical next steps for Apple would be to come out with a cheaper nano i Phone, widen their portfolio with a few more models and pack in new features [Broadcast TV, 3G/WiMax support, etc.]
Apple introduces svelte multimedia iPhone
SAN FRANCISCO (Reuters) - Apple on Tuesday debuted its much-anticipated take on the smart phone, a sleek device with a large screen that combines a phone, an iPod and instant messaging, sending its shares to a record high.
Steve Jobs, Apple's CEO and chief showman, pulled an iPhone from his jeans pocket at the annual Macworld conference and drew a standing ovation at the end of his speech. Investors also cheered, pushing Apple shares 8 percent higher, while those of rival high-end phone makers Palm Inc. and Research In Motion Ltd. fell.
Lacking the diminutive keypads found on other smart phones, Apple's iPhone has a single button and a 3.5-inch (9-cm) touch screen to navigate between playing songs and videos, displaying pictures, typing instant messages or making phone calls.
In a nod to Apple's widening influence in consumer electronics, Jobs said it would drop "Computer" from its name. Most of what Apple Inc. sells now is mobile technology, whether it be iPods or notebooks, which now outsell desktop Macs.
The iPhone is thinner than some of the cell phone industry's sleekest devices, such as Motorola Inc.'s RAZR. It will cost $499 to $599 when it debuts in the United States in June. Sales are expected to start in Europe in the fourth quarter and in Asia in 2008.
Cingular Wireless, the No. 1 U.S. wireless network and a unit of AT&T Inc., has a multiyear, exclusive agreement to provide U.S. service for the iPhone.
HUGE MARKET
Jobs said that in 2008 Apple could sell 10 million iPhones, representing roughly 1 percent of the current annual mobile phone market of 1 billion units a year. Last year, the consumer electronics market globally was worth $145 billion.
"This is a huge market right here," Jobs said in an interview, calling the iPhone "a natural extension of what we've been doing." Gartner analyst Mike McGuire said Apple seems to have backed up Jobs' claim that the company had "reinvented" the mobile phone.
"It's not just candy. These are entirely useful, new ways to use your phone," McGuire said.
The iPhone could hurt the market for other high-end phones such as the "Q," made by Motorola Inc., models from Nokia and Sony Ericsson and music phones from the same makers, analysts said.
Jobs, speaking at the conference, predicted the iPhone would have a similar impact on Apple's fortunes as two previous blockbusters: the Macintosh and iPod.
"Apple has been very fortunate that it has been able to introduce a few of these" hits, he said, referring to the introduction of the Macintosh computer in 1984 and the iPod in 2001. "We are advancing the state of the art in every aspect."
Apple shares rose $7.10 to close at a record $92.57.
The stock rose 18 percent in 2006, after more than doubling in 2005 and tripling in 2004, making it one of the best-performing technology stocks in recent years.
IPOD GROWTH MODERATING
Analysts said iPhone is a potentially huge source of growth as Apple seeks new revenue streams and ways to build on its 70-percent-plus U.S. market share for digital music players.
"I've already ordered two," said Nick Kaiser, president of Saturna Capital. "I don't know what the cost is and I don't care ... The higher it is the more I like it as a shareholder."
While iPods are still selling well, growth has moderated.
In the fourth quarter of its fiscal 2006, Apple sold 8.73 million iPods, up 35 percent from a year before.
In the fourth quarter of fiscal 2005, Apple sold 6.5 million iPods, more than triple in the year-earlier period.
Analysts cautioned, however, that the comparatively high price would keep the iPhone from becoming a mass market hit soon, though the price would almost certainly drop, as with most consumer electronics devices over time.
"This (iPhone) does have the potential to shake up the competitive landscape even if it's not a device that's targeted to mass consumers," said Stanford Group analyst Michael Nelson.
"It's clearly targeted toward the highest-value subscribers and they are the most profitable subscribers."
The iPhone is 11.6-millimeters (0.5-inches) thick, has five hours of continuous talk time and 15 hours for playing music, and includes a camera.
It runs Apple's OS X operating system, has the Safari browser for Web access and e-mail functions that can handle graphics and work with external services.
The iPhone can connect to the Internet wirelessly via Wi-Fi and has Bluetooth, a short-range wireless technology that supports wireless headsets or links to devices like printers.
Separately, Jobs said AppleTV, the newly renamed device for streaming movies, music, photos, podcasts and TV shows to home entertainment systems, would ship in February. AppleTV, which comes with a 40-gigabyte internal hard drive, will cost $299.
Apple has now sold 70 million iPods and consumers have bought more than 2 billion songs for about 99 cents each on iTunes. More than 220 TV shows are also available on iTunes.
Technical Specifications
Screen size 3.5 inches
Screen resolution 320 x 480 at 160 ppi
Input method Multi-touch
Operating system OS X
Storage 4GB or 8GB
GSM Quad-band (MHz: 850, 900, 1800, 1900)
Wireless data Wi-Fi (802.11b/g) + EDGE + Bluetooth 2.0
Camera 2.0 megapixels
Battery Up to 5 hours Talk / Video / Browsing
Up to 16 hours Audio playback
Dimensions 4.5 x 2.4 x 0.46 inches / 115 x 61 x 11.6mm
Weight 4.8 ounces / 135 grams
Here's a quick rundown of the features taken from the minutes of the Jobs' show at MacWorld: Quad band GSM+EDGE, WiFi (unusual for a Cingular device). Bluetooth. No 3G. 2MP camera. No GPS. 8 and 4 GB models. Full 3.5" touchscreen finger input. 160 pixels per inch. Recognized finger motions for commands. Photos calendar and messaging. Strong conf call support and speakerphone. Visual voicemail. iChat functionality. IMAP and POP mail support. Free Yahoo! push IMAP email. Safari browser which can load multiple pages and resize. Accelerometer. Ambient light sensor. 3.5mm headset jack input. Auto syncs content. And of course it works with iTunes.
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