Slash LaneDespite of flurry of new iPods and other digital media announcements made by Apple Computer on Tuesday, its most significant introduction was a dramatically improved version of its iTunes software, one Wall Street analyst says.
What Apple did do, according to Wolf, was cement its leadership in the portable music player market and the online music market. And the analyst credits much of that previous success to the company's robust and easy-to-use software applications.
"It’s the software, stupid," Wolf wrote in a research note. "It is an overused expression, but nonetheless software has been the secret sauce of Apple’s success in conquering the legal online music market where it has an 88 percent share in the U.S."
According to the analyst, Apple’s most significant announcement on Tuesday was an enhancement of iTunes software, which added numerous new features and even greater ease of use.
"The new features make the store even more user friendly than it was," he wrote. "In our opinion, iTunes represents the greatest barrier to competitors ever catching up with Apple’s multimedia ecosystem."
Still, the only product Wolf considered to be a 'new' product was Apple's still-in-development digital media hub, code-named iTV. Priced at $299, he believes iTV will represent arguably the easiest way for people to transfer content to their TVs.
"The significance of Apple’s Showtime announcements is that they should maintain, if not increase, the company’s dominance of the MP3 player market and the music download market," the analyst wrote. "They also insure that Apple will be one of the major players in the emerging video viewing market both on portable devices and in the living room."
Wolf continues to rate shares of Apple a 'Buy' with a price target of $90. He's estimating the company to earn $2.15 and $2.50 per share for fiscal 2006 and 2007, respectively.
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Despite of flurry of new iPods and other digital media announcements made by Apple Computer on Tuesday, its most significant introduction was a dramatically improved version of its iTunes software, one Wall Street analyst says.
"In view of the rampant speculation on rumor sites, it would have been next to impossible for Apple to pull a rabbit out of the hat.* And it did not," Needham and Co. analyst Charles Wolf told clients on Wednesday. "There were no new iPods, only enhanced and cheaper versions of existing models."
What Apple did do, according to Wolf, was cement its leadership in the portable music player market and the online music market.*And the analyst credits much of that previous success to the company's robust and easy-to-use software applications.
"It?s the software, stupid," Wolf wrote in a research note. "It is an overused expression, but nonetheless software has been the secret sauce of Apple?s success in conquering the legal online music market where it has an 88 percent share in the U.S."
According to him, Apple?s most significant announcement on Tuesday was an enhancement of iTunes software, which added numerous new features and even greater ease of use.
"The new features make the store even more user friendly than it was," he wrote. "In our opinion, iTunes represents the greatest barrier to competitors ever catching up with Apple?s multimedia ecosystem."
Still, the only product Wolf considered to be a 'new' was Apple's still-in-development digital media hub, code-named iTV. Priced at $299, he believes iTV will represent arguably the easiest way for people to transfer content to their TVs.
"The significance of Apple?s Showtime announcements is that they should maintain, if not increase, the company?s dominance of the MP3 player market and the music download market," the analyst wrote. "They also insure that Apple will be one of the major players in the emerging video viewing market both on portable devices and in the living room."
Wolf continues to rate shares of Apple a 'Buy' with a price target of $90. He's estimating the company to earn $2.15 and $2.50 per share for fiscal 2006 and 2007, respectively.
He has some solid logic in this analysis. I wonder if any of us know enough about iTV to form a worthwhile opinion about it. If it does what I think it does, I stand by my comments that it is an incomplete solution.
He has some solid logic in this analysis. I wonder if any of us know enough about iTV to form a worthwhile opinion about it. If it does what I think it does, I stand by my comments that it is an incomplete solution.
I think it all it really shows is the insane fragmentation of the video market. There is no way that Apple will be able to please some people regardless of the feature set of iTV.
edit: Of course some would complain regardless. If iTV came with everything you could think of, plus 2TB worth of internal Hard Drives. Somebody would be on these forums screaming: "if it doesn't come with 4TB internal they are not going to buy it, and it will be a flop".
iTV works for me, simple, slick and works right out of the box with my Mac and HDTV.
Ian
iTV works for me, simple, slick and works right out of the box with my Mac and HDTV.
Ian
Yeah me too. Good price, cool product. Can't wait to get one.
One question/comment. I would love it if this device would utilize Wake On LAN so that it can wake up my iMac in my home office when I want to browse pics or music stored on it from iTV in the living room. Otherwise, I'd have to leave the iMac on 24x7.
I think it all it really shows is the insane fragmentation of the video market. There is no way that Apple will be able to please some people regardless of the feature set of iTV.
edit: Of course some would complain regardless. If iTV came with everything you could think of, plus 2TB worth of internal Hard Drives. Somebody would be on these forums screaming: "if it doesn't come with 4TB internal they are not going to buy it, and it will be a flop".
Amen to that. I keep hearing the phrase "complete solution" but usually it's along with a list of features that would double the price, and not everyone is interested in anyway.