iPod(And How It Help Apple Take Over the World)

iPod Background

• Introduced on October 23, 2001• First iPod had a 5 GB hard drive• Steve Jobs said it would put, "1000 songs in

your pocket."

More iPod Background• The iPod was named by

a freelance copywriter, Vinnie Chieco.

• He thought of the name after remembering the movie, “2001: A Space Odyssey”.

• Apple had the name registered for internet kiosks that they had never used.

New Styles, New Storage

• Since the release of the first iPod, Apple has released 3 new iPods: the iPod Mini, the iPod Nano, and the iPod Shuffle.

• They have also released an iPod Photo and iPod Video.

New Styles, New Storage

• As the new iPods were introduced, customers were also given a choice of how large of a hard drive they wanted. iPods now came in storage capacities from 512 MB to 80 GB.

High Demand = High Profits

• Since MP3 players were introduced into the market, iPod has held a major portion of the profits.

• The iPod has increased in sales from selling 125,000 in the first fiscal quarter to selling over 21 Million is the last fiscal quarter.

High Demand = High Profits

• Effective Advertising and Limited Edition iPods have also help Apple sell the MP3 player.

• Limited Edition examples: iPods with Madonna autograph; the U2, How to Dismantle an Atomic Bomb, edition; Apple even came out with a Harry Potter Edition.

High Demand = High Profits

• While the actual iPod is a constant seller, Apple has also made lots of money off iPod accessories.

• Earphones, iTrips, Speaker Systems and many other extras has also helped Apple’s revenue.

High Demand = High Profits

• One major adventure that has created money for Apple was the launch of iTunes.

• At about $1 dollar a song, and if the user actually paid for all their songs from iTunes, the average iPod would hold over $10,000 dollars worth of music.

What Does This Mean for Apple?

• The giant success of Apple’s iPod, along with Apple’s other products, has created an average company profit of nearly $1 Billion dollars per quarter.

What Does the Future Market Hold?

• While iPods will, predictably, still hold the majority of MP3 sales, other companies are trying to also cash in.

• One example is Microsoft’s Zune.

Sources:

• www.wikipedia.com• http://www.wired.com/news/columns/

cultofmac/0,71956-2.html• http://www.apple.com/pr/library/2002/jan/

16results.html• http://www.apple.com/pr/library/

2007/01/17results.html• http://www.macworld.com/news/

2002/12/10/ipod/index.php