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The iPhone gets all the hype, but the iPod Touch is Apple’s second weapon of mass consumption constituting nearly 40 percent of the company’s mobile device sales, according to a report.

Apple has sold 45 million units of the iPod Touch over its lifetime out of the 120 million iOS devices shipped overall, according to estimates by market research firm Asymco. That’s a hefty number relative to the 60 million iPhones Apple sold through June and the 3.2 million iPads sold to date.

When Steve Jobs introduced the iPod Touch, he called it “training wheels for the iPhone.” The phoneless, contract-free device has easily found an audience: younger people who likely can’t afford hefty smartphone plans but still crave the iOS experience. A study in 2009 found that 69 percent of iPod Touch users are between 13 to 24 years old, whereas 74 percent of iPhone owners are older than 25. The study also found that iPhone owners were generally wealthier than iPod Touch customers.

In a separate post, research firm Asymco questioned why other manufacturers haven’t produced “clones” of the iPod Touch to compete with Apple like they have with the iPhone and the iPad.

“If cloners are rushing to copy the iPad, why not its smaller incarnation?” the company asked.

It’s a worthwhile question. In terms of features and price, the closest competitor to the Touch so far has been the Zune HD, which some observers criticized for having a poorly executed launch. When Microsoft released the Zune HD in September 2009, the device included a few applications handpicked by Microsoft staff, but the platform was not open to third-party developers to offer additional software. In other words, there was no app store to compete with Apple’s gigantic iOS ecosystem. Other than music and video playback capabilities, it was unclear on day one what else the Zune HD could do.

Meanwhile, there are rumors that the Zune HD will be overhauled with Microsoft’s upcoming Windows Phone 7 operating system, which will launch with an app store. Perhaps then the Zune HD might rise as a serious contender to the Touch.

Photo: Jon Snyder/Wired.com

Source:wired.com

Posted under Gadget Reviews

Despite a raft load of nifty new features, Apple’s new Mac notebooks will have a hard time moving off store shelves during the economic crisis, industry analysts say.

"There
will be a lot of people looking at a lot of stuff at the Apple Store,
and they’ll probably come out with [iPod] nanos or shuffles," said Roger Kay, an analyst with Endpoint Technologies. "That’s
what people are going to feel like they’re going to afford this year."

At its special notebook event Tuesday, Apple refreshed its entire notebook line, adding faster processors, multitouch trackpads, aluminum enclosures and NVidia graphics
chipsets. In addition to adding new features, Apple is also making moderate price cuts for the MacBook and MacBook Air. However, analysts say Apple’s price cuts are not enough for the company to remain competitive in the face of a broad financial collapse.

"Out of all the [companies] who
will be under pressure, it will be Apple because the price points are
still significantly higher," ThinkPanmure analyst Vijay Rakesh said in a phone interview.

The entry-point MacBook
dropped from $1,100 to $999; the high-end MacBook Air equipped with a solid
state drive dropped from $2,600 to $2,500, but its standard
configuration offering remained at the same $1,800 price point. The
MacBook Pro prices remained static — with a $2,000 starting point.

Early in the event,
Apple boasted grabbing 39 percent of the notebook market in education,
surpassing Dell, one of its major competitors. Despite the significance
of this figure, it’s unlikely
Apple’s notebook refresh will enable Apple to retain its grip on this
market segment, Rakesh said.

"If you
look at the educational side, the question is, do public school
budgets suffice for next year?" he said.

Just
days before Apple’s notebook event, Rakesh and other analysts — including
Piper Jaffray’s Gene Munster and RBC Capitalist’s Michael Abramsky — said they were anticipating a sub-$1,000 notebook from Apple in order
for the corporation to hit its gross margin guidance for the fourth quarter.

Rakesh said Apple’s $999 MacBook was a disappointing entry into the sub-$1,000 category: Most analysts were hoping for Apple to announce an $800 or $900 notebook.

Rakesh added that Apple still has yet to set foot in the netbook market — cheap, low-powered devices designed for internet use that are soaring in popularity. However, in a Q&A session, Steve Jobs said the netbook category is too immature for Apple to enter.

"That’s a nascent market that’s just getting started, and we’ll see how it goes," Jobs said.

Meanwhile in trading, while Apple had gained a record-breaking 13 percent in share prices Monday and Tuesday, the stock deflated 5 percent by the end of the notebook event. However, stock drops have historically been
the case during Apple keynotes, and some are viewing selling stock during product announcements as a trading
strategy for investors.

See also:

• Hands On With the New MacBooks
• Steve Jobs Unveils Newer, Sexier Aluminum MacBooks
• Liveblog: Apple MacBook Event 2008
• Apple Teases New Notebook, Rumored Under $1,000
• Photos: Is This the MacBook ‘Brick’?
• Rumor Says That Apple Brick Will Be A Metal Brick
• Apple’s Brick: A Dual-Screen, Foldable Netbook?

Photo: Apple

Posted under Gadget Reviews