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Editorials @ Applelust
Calculated Rave: iPod wows, disappoints
© 10-24- 2001 Andras Puiz

Anticipation held the Mac community captive for a week: Apple was going to release what it called a "breakthrough digital device", something that was going to be "not a Mac."

The usual suspects of rumormongering all hinted towards a musical gizmo (though not a "run-of-the-mill MP3 player"), but speculation was rampant as usual. Some even hoped for the return of the Newton, while others expected a portable movie studio, or something totally unheard-of.

In the end, the new device (called the iPod) has turned out to be an MP3 player indeed, and Apple's stock price fell sharply on the news. Looks like Wall Street was expecting a literal breakthrough. One wonders how the Wall Street can be so naive. Haven't they heard of a thing called "hype"? So iPod is an MP3 player, though run-of-the-mill it certainly is not.

First of all, it comes from Apple, a company that hasn't released a consumer appliance for a long time. The Apple brand in itself guarantees some attention from a lot of circles: enthusiasm from Apple and Mac fans, and curiosity from all sorts of analysts, who have labeled the company as the bad boy of the computer industry. Apple is now famous for failing to behave like a decent tech company should in these difficult times. Apple refuses to lay off the expected thousands of employees, and while vicious price wars are raging throughout the computer industry, Apple has increased both its gross margins and its R&D spendings at the same time. And now, mere days after Intel announced that it was pulling out of the appliance business, Apple is entering the same market.

Apple's announcement of the iPod on October 23, 2001, two days before Microsoft launches its vast media campaign to tout Windows XP, seems to be a brilliant move.

While people have speculated that it takes more than an MP3 player to successfully upstage Windows XP, Apple can use this opportunity to send a clear message to people harboring huge MP3 collections: Microsoft may be pulling the plug on MP3 with the next release of Windows, trying to use its sheer power to force its own Windows Media format down the throat of millions of users, but the days of MP3 are far from numbered. Apple, about the only viable Windows alternative left on the planet (at least for the immediate future), is embracing MP3 so much that it actually releases a hardware device to cater to that music format. By the way, the iPod absolutely requires a Mac to work, there's no other way to transfer songs to it except from a Mac. So Apple wants the iPod to be another reason to buy a Mac. But does iPod have enough leverage for that? By itself, hardly. As part of the digital hub concept, maybe slightly more so.

But of course, converting Windows users is not the immediate goal for the iPod. The immediate goal is to make money, and hopefully lots of it in the holiday season. And here's when Apple can shamelessly take advantage of the enthusiasm of its installed base. Apple knows that several Mac owners who haven't even considered an MP3 player before may now want one just because it carries an Apple logo. All Apple needs to do is to come up with an attractive product that offers some advantages over "run of the mill" MP3 players, and show it to the Mac crowd. The rest takes care of itself... Unless the device is a dud. So how does the iPod stack up?

Small wonder? Wait, I last read that on a Cube leaflet...

In true Apple fashion, iPod isn't so much the emergence of something completely new, but rather an existing product type executed in an elegant and user-friendly fashion, with a feature set that does offer more than the basics, including some genuine innovations and industry firsts, yet isn't nearly compelling enough to crush all competition. Especially in light of its price point.

So what is the iPod? If you haven't spent at least an hour on Apple's site trying to gather all the specs, here are the most important details, features and limitations.

The iPod is a small and beautiful $399 MP3 player that fits in the palm of your hand, with 4.6 gigabytes of storage (commonly referred to as 5 gigabytes), a FireWire connection, and an advanced user interface. It features a backlit LCD display (complete with a Chicago system font), and a scrolling wheel that looks pretty intuitive. The iPod's battery allows for 10 hours of playback, and can be recharged to 80% of its capacity in an hour (a full recharge takes three hours). Its power adapter resembles the new, white square that comes with the iBook and the PowerBook, it is probably the same product. However, the iPod also recharges automatically whenever it's connected to a Mac via its FireWire port.

A great, yet hardly publicized feature of the iPod is that it can be mounted to the Mac's desktop as a FireWire hard disk, allowing you to store and transfer any kinds of files; it can even function as a startup volume. So for the price of an (expensive) MP3 player you're also getting an ultra-portable FireWire hard disk, though its capacity is on the low side.

When you first connect the iPod to your Mac, it will, by default, think that you want it to be synced at all times to your iTunes music library on that particular Mac. This means that iTunes will copy your entire library, including your playlists, to the player when you first connect the two, and whenever you connect them again, it will automatically make sure that whatever is on your Mac should be reflected on your iPod. This works one-way only, so if you copied other songs from other Macs to the iPod, they will be promptly deleted.

This default setting only makes sense if you're always using the iPod as a player, and never as a means of transferring music from one Mac to another. Should you want to do that, you can fortunately choose a manual mode, where you can, still in iTunes, drag and drop playlists and files to and from your iPod.

The speed of the FireWire connection should be refreshing to those who have endured transferring megabytes of files through the usual USB connection available in other MP3 players. Apple claims that the iPod is the first MP3 player with FireWire — they should know, as they own and control use of the FireWire patent. Apple's promise of being able to copy an entire CD in seconds is perfectly plausible.

Apple's vision of establishing the Mac as the hub of your digital lifestyle, and thus relegating connected appliances to a satellite status comes at a cost. The only way to modify the music library or the playlists on the iPod is through a Mac and iTunes. Whether or not you can mount the iPod on a FireWire-equipped PC with Mac compatibility software remains to be seen, but recording or copying from external devices directly to the iPod is out of the question: it's an output and storage device, with no recording capabilities of its own. Its only input means is a FireWire port.

The iPod has a menu system that resembles that of iTunes, allowing you to browse the music library in an artist-album-song hierarchy, or just by an alphabetical listing of all songs. It also lets you choose playlists and shuffle songs during playback, but you cannot make any changes to the playlists or to the music library through the iPod's own interface. That, again, requires the "hub": a Mac and iTunes.

These are somewhat understandable conceptual restrictions, even if they can be regarded as drawbacks in comparison to the identically priced, though bulkier and less elegant Nomad Jukebox 20GB, which, as its name suggests, offers four times as much storage as the iPod.

However, it's much harder to explain why the iPod doesn't offer any strictly playback-related advanced features either: even the 6-gigabyte version of the Nomad Jukebox packs an equalizer, 3D spatialization effects, Dual Stereo Line Out, and Four Point Surround capabilities for 150 dollars less, all of which the iPod lacks. It has taken iTunes eleven months to finally sprout an equalizer in its (now up-coming) version 2.0, so perhaps we should expect a similar path with iPod too.

It remains to be seen whether the iPod is going to be a hit or a miss. Apple's walking on a thin line here. Seamless integration with the Mac and iTunes is very impressive, but at least one target group for the product, namely students, aren't known to be afraid of a little hackery. We'll see how compelling they'll find the ease of use that the iPod presents.

The other features of the new Apple gizmo add up to an impressive combination: its beauty, elegance, small size and generous capacity are a peerless mix as far as I know. FireWire connectivity is an industry first, and the fact that the iPod doubles as a portable hard disk may well end up as its killer feature.

I for one certainly hope that the iPod will be a success. I think it has a great potential, and I'd hate to see it go away before fulfilling it. I'm already intrigued by the possibility of an iPod Version 2... not to mention the inevitable price cuts that accompany the evolution of any successful digital product. And I really hope Apple has other digital gizmos up its sleeve that are at least this good.

Taking our money in smaller chunks

The appearance of small digital devices from Apple signals a favorable trend. As we know, Apple's prospective customers are mostly people who already own and use Apple products. Apple is reluctant to attempt breaking out of its niche and targeting bigger markets like business users: that would almost certainly mean participating in a price war, which Apple cannot afford. Instead, Apple works on expanding its 5% user base that consists partly of creative professionals, and partly of well-to-do consumers with a sense of style and a need for simplicity. The Apple Store project, whose goal is to expand Apple's market share, is also apparently aimed at these target groups. That process isn't fast enough, though, for Apple to rely on it for its bottom line, so basically, the only way Apple can hope to make serious money today is selling Macs at their well-known premium prices to the only audience that is willing to buy them: existing Mac owners.

However, as Macs get better, that group gets eventually saturated, and Mac owners will have little reason to replace their existing computers for some time to come. Add to that the current state of the economy, and you'll get fewer and fewer people in Mac-replacing moods. So how can Apple still make some money?

Easy: by selling accessories that work with all those nasty, not-about-to-be-replaced-for-a-while Macs. Do that just in time for Christmas, and Apple may look at another rosy quarter if the gadget generates enough Apple-lust. Is the iPod the right product for that? Only the market will tell.

We have a forum topic here on the iPod.

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