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Apple Plans to Grow to $10 Billion

mattmcal writes "Fred Anderson, CFO of Apple, this week outlined Apple's strategy for returning to its former self as a $10 billion company. He cited portability, digital lifestyle, and music as the three pimary drivers of this new strategy. Anderson announced last month that he plans to retire June 1 of this year."

68 of 244 comments (clear)

  1. iPod by valkraider · · Score: 5, Funny

    $5 billion of that will be from iPod replacement batteries...

    [obDisclaimer: I own a 1stG iPod and a 2ndG iPod - batteries still as good as new. But the headphones......
    And of course, they would get to that $10 billion sooner if they would release a G5 laptop.
    I can personally guarantee them to get $3k closer when they do...]

    1. Re:iPod by byolinux · · Score: 2, Informative

      I got my third set of headphones today for my 30gb iPod. I mean, cool - they're free and it just takes a quick call to Apple UK Support, but it's a shame.

      Also, my co-workers mock me for having to go to the Apple Support page, because I was saying how great the build quality on Apple kit is.

  2. Shouldn't that be CFO? by o'bryon · · Score: 5, Informative

    Fred Anderson is the CFO, NOT CTO...

  3. right before retirement eh? by Anonymous Coward · · Score: 4, Interesting

    Am I the only one thats a bit skeptical that hes saying this right before retirement?...

    Seems to me like a:
    1.) Talk up Apple, raise share price.
    2.) retire, have all options vest.
    3.) Profit!

    situation to me.

    1. Re:right before retirement eh? by daviddennis · · Score: 4, Insightful

      This looks like unfair moderation to me, but since I have no mod points I can't correct the wrong :-(. It's troll-like, I suppose, but also a fair question.

      That being said, from about 8b in revenues to 10b doesn't seem like that much of a stretch, and probably isn't enough to significantly impact the share price, which has remained within its normal range.

      D

  4. Current Market Cap: 8.87B by Pr0Hak · · Score: 5, Informative

    According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already. I think Apple is well on track with the high profit margins and popularity of the iPod, and all the great things they have been doing with both Mac hardware and MacOS X the last couple of years.

    The excitement that has been surrounding Apple the last couple of years reminds me of the Macintosh during the System 7 or PowerPC transitions.

    Also, it should be noted that Fred Anderson is the C*F*O of Apple, not the CTO

    1. Re:Current Market Cap: 8.87B by krem81 · · Score: 5, Informative

      When people talk in terms like that ($10B company, etc.) they're usually talking about annual revenue, not market cap. Stock price fluctuates a lot - depending on market's mood Apple could have $10B market cap tomorrow. Revenue, however, takes a while to catch up. Apple's revenue for 2003 was $6.7 B, so the company has to grow 50% to get $10B mark.

    2. Re:Current Market Cap: 8.87B by SewersOfRivendell · · Score: 4, Interesting
      The excitement that has been surrounding Apple the last couple of years reminds me of the Macintosh during the System 7 or PowerPC transitions.

      I think it's actually been more exciting, in that it's more broadly-based this time, and Apple's critics have much less solid ground to walk on than they did in those periods. No one seriously writes "Apple is dying" articles anymore.

    3. Re:Current Market Cap: 8.87B by BitGeek · · Score: 5, Insightful


      You could make that argument, but you'd be just like the people claiming Apple was dying when they had three times the revenues of microsoft!

      Literally, people have been claiming this in the press and online for about 20 years. (Yes, "online" did exist 20 years ago.)

      All the unix geeks I know are getting apple laptops, or want to. The transition to Unix is even more significant than the PowerPC transition, in my mind, because it paves the way for everybody but Microsoft to be using the same OS, which easy transportability of applications, and thus much more collective Unix market share.

      Apple has been hampered by Motorola, but hopefully IBM will be more energetic in keeping the processors up to standard...

      I do not think the Mac market is dying at all...

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
    4. Re:Current Market Cap: 8.87B by IntlHarvester · · Score: 2, Interesting

      Literally, people were claiming that KMart would go bankrupt for about 20 years ... and then they finally did! So much for that non-argument :P

      Furthermore, that's 100% knee-jerk defensiveness -- especially because I made it clear that I don't think Apple is dying at all.

      Most of the Unix Geeks I know have always used Apple equipment on and off over the years, so I don't see the massive market growth you are predicting from Apple capturing this oh-so-not-crucial .01% of the market (that doesn't really buy shrinkwrapped software anyway).

      There's an interesting argument regarding the future of the Mac platform here.

      Note that I fall purely on the pro-Mac side -- I would love to see Apple return the Mac platform to a competitive position in the general purpose personal computing market. Just that over the last 5 years Apple's shown 0 interest in doing so and instead has time and time again gone back to soak their installed base. Sorry, that I'm not excited as the rest of you about Apple making big revenue selling iPods, RIAA Tunes, and other consumer do-dads, but it's hardly trolling.

      --
      Business. Numbers. Money. People. Computer World.
    5. Re:Current Market Cap: 8.87B by overunderunderdone · · Score: 3, Informative

      Errr... I hope I'm not being stupid here but surely if Apple increased it's revenue fifty percent it would double to $13.4 billion?

      Sorry but you are. Doubling revenue to $13.4 billion would be 100% growth not 50% growth. Growing by 50% from $6.7 billion would be $10.05 billion.

  5. Should be possible by FePe · · Score: 4, Insightful
    "Innovation is critical. 'Because we have this modern Unix-based technology in Mac OS X we are able to innovate much faster than Redmond (Microsoft Corp.). Their last release was in 2001, but you'll see us continue to innovate in our OS.' "

    One of Apple's major strengths lies in its design and ease of use, which isn't so much different from Microsoft, but from the majority of the open source world. Apple couples these two design principles, ease of use and configurability, with their OS and also their other products, so their products are very appealing to many customers, especially designers, drawers, and graphic people.

    In the near future, I believe there are going to be more and more of such jobs, and so Apple plays a large role in the IT field. I think the $10 billion limit can be reached.

    --
    "Until you do what you believe in, how do you know whether you believe in it or not?" -- Leo Tolstoy
  6. Re:Current earnings? by primordial+ooze · · Score: 5, Informative

    Any idea of what Apple's current earnings are right now?

    http://www.apple.com/pr/library/2004/jan/14resul ts .html

    Apple Reports First Quarter Results

    Revenue Increases 36 Percent Year-Over-Year

    CUPERTINO, California--January 14, 2004--Apple(R) today announced financial results for its fiscal 2004 first quarter ended December 27, 2003. For the quarter, the Company posted a net profit of $63 million, or $.17 per diluted share. These results compare to a net loss of $8 million, or $.02 per diluted share, in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter's revenue.

    ...

  7. A note from the IT trenches by daviddennis · · Score: 5, Interesting

    It's been a very interesting turnaround in the geek/nerd market, to the extent that even CmdrTaco has a MacOS X system. It's too bad this market doesn't seem to be a significant percentage of the whole.

    However, I was just managing a virus outbreak, and finally getting the Symantec Centralized Anti-Virus solution to more or less work in my company, and I can say the value of the time it took to do this would have easily paid the price difference between the PCs we have and the eMacs we could have bought instead. Add outside consultant time and Windows TCO compared to the Mac gets even more absurd.

    Most of our employees use a web-based CRM system I developed for the company that's completely platform-independent, so theoretically there should be no problem at all switching.

    Unfortunately, we have a phone system that forces a Windows lock-in for a variety of reasons, but if it didn't, I would think a switch to Mac for most people wouldn't be that difficult a sell. "Look, you can still get Office, and you'll have 1% of the trouble with viruses and worms. It's a no-brainer!"

    If mid-sized companies like ours could be a bit more open-minded, and if they could avoid buying a phone system like we did (it was a mistake, for a lot of other good reasons), I think more companies would find major advantages in switching.

    D

    1. Re:A note from the IT trenches by daviddennis · · Score: 2, Insightful

      Do you actually know that, and if so, how'd you find out?

      Apple's great because they have some of the best-loved products on the planet. And I think the success of Slashdot's Apple section reflects that.

      If Rob was bribed with a PowerBook, it certainly paid off well for everyone, including us as readers.

      D

  8. hmm by pdwestermann · · Score: 4, Insightful

    I think it's looking pretty optimistic for apple at this point....the ipod has helped people realize that paying a premium for an excellent piece of industrial design just might be worth it after all, the same mentality mac users have had for a while now.

    1. Re:hmm by oscast · · Score: 2, Insightful

      While it is true that the iPod and the Macintosh are wonderful works of industrial design. It is hardly the only aspect of either product which puts it ahead of the competition.

  9. Re:Current earnings? by nelsonal · · Score: 5, Informative

    Earnings are pretty small, there aren't too many companies that earn more than 10 billion/year. He was likely refering to revenues, (hit about $6.2 last fiscal year, $6.7 last calendar year).

    --
    Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
  10. Grammer Nazi by Anonymous Coward · · Score: 2, Funny

    Doesn't take long for the Gammer Nazi to rear it's ugly head. Its a sign of there low esteem.

    1. Re:Grammer Nazi by pknoll · · Score: 2, Funny
      Don't you mean:

      It doesn't take long for the Grammar Nazi to rear its ugly head. It's a sign of their low esteem.

      =)

  11. Mc Donalds... by Biotech9 · · Score: 4, Interesting

    Anderson also hints that there are more alliances in the works (beyond Pepsi, HP and AOL), but that there is nothing to announce yet.

    A previous rumour doing the rounds was a 100 million free song deal with McDonalds, Which you can find here.
    McDonalds later said there 'Was no deal to announce', but did not actually deny the rumour.
    The revenue and publicity from such a deal would certainly put iTunes further in the lead in the online music store biz.
    But perhaps Coke might not be so happy with that.

    1. Re:Mc Donalds... by ottawanker · · Score: 2, Interesting

      Keep in mind that most game pieces come on fry boxes and drink cups, and those drink cups are usually filled with - you guessed it - Coke products.

      I think that's exactly the point he was trying to make.. It wouldn't look to good to have Coke (indirectly via McDonalds) copying Pepsi (who were the first ones to give away iTunes under the cap) and start giving away free iTunes, because then it would seem as though Coke isn't very inventive, and that Pepsi's marketing worked better than anything Coke could've come up with.

  12. This should make one group extremely happy.... by amichalo · · Score: 4, Insightful

    ...The technical trainers.

    During the "good ole days" (1998-2001) when dot-com money was fluid, training centers were handing out MCSE cert training and testing and getting better than $2000 or even $3000 for it. Now, I doubt many people care as they saw what it bought them.

    Enter Apple growing market share. Companies will still need someone to show the secretary how to use the Dock. It isn't that it's difficult to use, it's that she just doesn't have the self confidence that she's doing it right.

    The winner (besides our favorite produce supplier) is the training company that now has a service someone will buy.

    --
    I only came here to do two things; kick some ass, and drink some beer...looks like we're almost out of beer.
    1. Re:This should make one group extremely happy.... by Golias · · Score: 2, Insightful

      No PHB who passes up a $400 PC for a $1200 Mac in order to get an "easier to use" computer is going to accept spending a single dime on training. Lack of high administration and training costs will be the main ways he plans on having the Mac pay for itself. If the receptionist is too afraid of the Dock to do her job, she's fired.

      --

      Information wants to be anthropomorphized.

  13. Re:iTMS: apple's only hope. by Anonymous Coward · · Score: 3, Insightful
    .....and missing controls (like on/off switch).

    Step 1: Press and hold the Play/Pause button for 5 seconds to turn the iPod off.

    Step 2: RTFM!!!

    Step 3: Gently press any button to turn it back on.

  14. Mac users and stockholders owe Fred a LOT by csoto · · Score: 5, Informative

    This guy has consistently beat the crap out of Apple management over waste. Order fulfillment has never sunk to (pre-Jobs) bad levels. Their products are competitively priced, and they sure are cool. Innovation abounds. None of this would be possible if Apple were still hemorrhaging money.

    Good job, Fred! Good luck with retirement.

    --
    There exists no way of exchanging information without making judgments. --Bene Gesserit Axiom
  15. Re:iPod battery crisis by oscast · · Score: 2, Informative

    "We'll give it a rest as soon as Mac fixes the iPod battery problem."

    First of all, there is no such company as Mac... (its Apple) and there is no battery problem within the iPod... as has been pointed out time and time again in these threads.

  16. Re:iTMS: apple's only hope. by oscast · · Score: 4, Insightful

    "Apple's only hope for such great growth, really ,is iMusic." Thats a reaching statement considering the fact that they dont yet make such a product. "That is the only thing they have that is truly competitive." Apple makes iMusic? Never heard of it. "The iPod bubble will burst as soon as someone comes out with something similar" There are already plenty of knock-offs.... with similar features yet non have knocked apple off its high point. "but with a battery hatch" This would be an important feature if the iPod's battery was non replaceable (it is) and if the iPod battery was unreliable. (It's not) and missing controls (like on/off switch)." It doesn't need an on off switch. It turns off by itself. "Likely it will cost half as much." So, you're suggesting that this hypotheticvall competitor will ADD more and yet cost half that which Apple charges. HAH! "Apple's desktop machine bubble already burst:" Could have foold me. Their desktop business is doing very well. "the Mac's appeal only to a tiny niche market" Apple computer users make up between 10-12% of the computing market. That's hardly a tiny market by any stretch of the imagination. You must be thinking in terms of "market share" rather than "install base". Apple's "market share" is small not because people aren't buying their computers or even because people are bying them less frequently than before. (Quite the contrary). Rather, PC users are replacing their existing machines twice as freequently. (Less longevity). Because "market share" is solely determined by quarterly or annual sales figures the "market share" number will be low while the user base continues to grow. "which will not grow unless Apple does such things as drop the price" I don't see how Apple could drop the price much more. They're already priced the same if not lower then PCs of comperable specs. "and mass-market the thing." They do this already. A better strategy might be to simply educate the masses about business in general. If your post is an indicator or the average PC user... i'd say its an absolute necessity.

  17. iTunes for europe? by Anonymous Coward · · Score: 2, Interesting

    Or at least the UK for the time being. It's been years now and still no iTunes Music Store, it's getting a bit sickening, I can assure you, hearing about how many bloody units have been sold in the US. For us Apple zealots on this side of the pond, time is almost up! Come on Apple, show us what a $10B company can achieve when it really wants to. Surely opening up new markets is the key to improving profits especially when the outlay is practically zero? Not flaming or trolling, just whining.

    1. Re:iTunes for europe? by Pope · · Score: 3, Informative

      It all has to do with getting the record companies to buy into the process, nothing to do with Apple not having a technical reason.

      We don't even have it in Canada yet!

      And, no, it certainly hasn't been "YEARS" as you complain, it was launched last April, not even 11 months yet.

      --
      It doesn't mean much now, it's built for the future.
    2. Re:iTunes for europe? by nordicfrost · · Score: 4, Interesting

      I was at an Apple press conference today, where they showed off iLife to the press.

      Arne Odden, a rather nice fella and the CEO of Apple Norway, started the whole thing by saying that he's getting a bit tired of the questions about iTunes Music Store for Europe, since no one knows when the myriad of contracts, recordings (yes, even European artists record and these are going into the store), and the kitchen sink will be ready.

      So he said it with these words:
      It'll ready, when it's ready.

      And that is what we know about the Apple Music store for Europe today. He even mentioned that there's some recorings being prepared from tapes. Studio tapes that is. Interesting...

      On a side note, the presentation falled into the clammy hands of the DemoDevil when the iPod everything was stored on reached its limit (4 kB left!) and crashed the whole shebang right into the stone age. That was the first time I ever saw the Mac equalent of a BSOD, the grey please-reboot-window. Even that was designed beautifully. The Wintel fanatics started to laugh, but made utter fools of them selves afterwards by asking the dumbes, most inane questions I have ever heard from persons supposed to work for the computer press (Think PC Magazine journalists).

  18. Re:What a KLUDGE! by squiggleslash · · Score: 5, Informative
    To turn it on, you press any button. You certainly don't need to read a manual for that. Nor do you have to turn it off, the thing will go into sleep mode anyway if it's not playing music and not used for more than a small period of time.

    In practice, users never need to treat it as "on" or "off", which - if it wasn't for the poor design of most units that are "always on" in some way - really ought to be the way most electronic devices work. It's more intuitive to have the thing just doing what you ask it than to have to examine what mode it's on and react accordingly.

    --
    You are not alone. This is not normal. None of this is normal.
  19. Re:hopefully by increasing volume not margins by squiggleslash · · Score: 2, Insightful
    You don't have to buy it, and if you try to sell it Richard Stallman will rip your head off.
    <pedant>No he'll not. He'll be perfectly happy for you to sell it as long as you provide source code and do not restrict the person you're selling it to's right to redistribute the code under the GPL.</pedant>

    Various companies such as the major Linux distro producers, those shareware disk copier companies back in the pre-Internet early-nineties, and even proprietary vendors such as Sun and Apple "sell" copies of Emacs in some shape or form.

    --
    You are not alone. This is not normal. None of this is normal.
  20. Re:hopefully by increasing volume not margins by fluf · · Score: 5, Informative
    I'm not going to debate you on the merits of a cheap headless machine from Apple, because I'd love one myself. Furthermore, I'm also not going to attack your criticism with regards to the 'crippling' of the low-end hardware by Apple, because you are in fact correct, and I share your disdain for Apple's actions on that front. I'm just going to correct you on factual misinformation in the following quote:
    Especially since they criple the lower end hardware, making it less attrictive to switcher. Example: The ibook you buy can't drive an external monitor at more the 1024x768 when my pc 200 mhz laptop easily can? This has turned off many people I know.

    Technically, all the current iBooks can drive an external display at a resolution above 1024 x 768. Apple just turns it off in software (the open firmware). For information on how to easily (without risk of losing warranty) turning this back on, look here:

    Rute Moeller's spanning hack for the iBook

    And yes, I fully agree that we shouldn't have to resort to this kind of solution, but it is a solution nonetheless, and one that has worked very well for me for the past two years on my 600 Mhz iBook. In fact, I wouldn't have bought my iBook had I not known about this.

    Cheers.
  21. 10G$ by Smartcowboy · · Score: 2, Funny

    If they wait long enough, inflation alone will bring them to their objective :P

  22. Re:iTMS: apple's only hope. by oscast · · Score: 5, Insightful

    (Sorry posted in html rather than plain text) here it is again... properly formatted

    "Apple's only hope for such great growth, really ,is iMusic."

    Thats a reaching statement considering the fact that they dont yet make such a product.



    "That is the only thing they have that is truly competitive."

    Apple makes iMusic? Never heard of it.



    "The iPod bubble will burst as soon as someone comes out with something similar"

    There are already plenty of knock-offs.... with similar features yet non have knocked apple off its high point.



    "but with a battery hatch"

    This would be an important feature if the iPod's battery was non replaceable (it is) and if the iPod battery was unreliable. (It's not)



    and missing controls (like on/off switch)."

    It doesn't need an on off switch. It turns off by itself.



    "Likely it will cost half as much."

    So, you're suggesting that this hypotheticvall competitor will ADD more and yet cost half that which Apple charges. HAH!



    "Apple's desktop machine bubble already burst:"

    Could have foold me. Their desktop business is doing very well.



    "the Mac's appeal only to a tiny niche market"

    Apple computer users make up between 10-12% of the computing market. That's hardly a tiny market by any stretch of the imagination.

    You must be thinking in terms of "market share" rather than "install base". Apple's "market share" is small not because people aren't buying their computers or even because people are bying them less frequently than before. (Quite the contrary). Rather, PC users are replacing their existing machines twice as freequently. (Less longevity). Because "market share" is solely determined by quarterly or annual sales figures the "market share" number will be low while the user base continues to grow.



    "which will not grow unless Apple does such things as drop the price"

    I don't see how Apple could drop the price much more. They're already priced the same if not lower then PCs of comperable specs.



    "and mass-market the thing."

    They do this already.

    A better strategy might be to simply educate the masses about business in general. If your post is an indicator or the average PC user... i'd say its an absolute necessity.

  23. Re:hopefully by increasing volume not margins by Pope · · Score: 5, Insightful
    Look at the margins apple makes on machines.

    The margins are not as much as the average outraged x86 geek makes them out to be. From what I've heard, they make as much on an iPod as on an iMac. Don't forget they have to plow a lot into R&D, whereas Dell just has to order the latest chipset and case from Taiwan and load whatever MS is offering at the time and sell them together.

    My hope is the next revision or two of the G5 desktop takes off like crazy, as their power and speeds will more closely match the x86 market. Motorola's inability to ramp up the G4 series fast enough was a serious blow to sales, I'm sure.

    --
    It doesn't mean much now, it's built for the future.
  24. Re:Amazing new thing: iMusic by valkraider · · Score: 4, Funny

    Yay! It's the "PCs are better cause they have floppy drives" argument. After lunch I bet you'll hit us with the "PCs have multiple mouse buttons" whammy and we'll all put our Macs up on eBay and head to DELL.com for a *real* machine, with a full-on serial port too I bet! Rippin!

  25. Re:There is no problem by oscast · · Score: 3, Informative

    "The rather high chance of DESTROYING the iPod (both regular and mini) just by trying to open it to get to the battery is well documented." Perhaps, but this is based on the assumption that the iPod batter is faulty and has a high probability of failure. It does not (this despite reports to the contrary)



    "The ludicrously high price of the replacement battery is also also well-documented."

    And it is also well documented that you can get a cheaper battery from a different supplier for a fraction of the cost.



    "Before there were complaints. Apple's semi-official position was "just throw the iPod away" when the battery died."

    That'd not true at all. Before there was a battery replacement program, Apple's semi-official provision was to buy an extended warrenty if your iPod was not already covered under its 1-year warrenty.

  26. Re:It is no joke by oscast · · Score: 4, Informative

    "Apple has yet to solve the battery problem."

    Again, there is no battery "problem".

    The iPod battery lasts as long as any bettery of that type is supposed to last. I forget what the exact specs are... but they are very liberal (although it does vary depending on the number of times you charge the device).

    As is to be expected, not all things work as planned... hence the reason for Apple's warenty, Apple's extended warrenty as well as its more recent battery replacement programs. Additionally, iPod batters can be purchased from theird part manufacturers for less than even Apple sells.

  27. Re:There is no problem by squiggleslash · · Score: 4, Informative
    If your iPod's battery starts to fail within the warranty period, then you can send it in to get replaced, free of charge.

    If it fails outside of the warranty period, you can have Apple replace it for $99, or buy a replacement from a third party vendor, including tools to safely open your iPod case, for about $50.

    The battery was never intended to be a servicable part. Instead it was intended to last the entire lifetime of the machine. Some batteries - a tiny fraction of iPod users overall - have turned out to last only 18 months - that's unfortunate, but as both Apple and third party vendors offer replacement services, it isn't a problem.

    Apple's position is not "Throw the iPod away."

    You might just as well complain about the "iPod screen problem". After all, the screen will fail on a number of iPods earlier than expected. People are used to batteries that fail after six months and need replacing because they're only designed to last that long; if other batteries typically were built to last five to ten years, they wouldn't be seen as a user servicable part.

    --
    You are not alone. This is not normal. None of this is normal.
  28. Re:There is no problem by BitGeek · · Score: 5, Funny


    My screen failed when I used it to hammer stakes for my tent on a camping trip.

    Imagine how dissapointed I was when I couldn't use the iPod for the rest of the trip!

    Now I hear you can't easily replace the battery when it runs out of charge?

    Amazing people put up with this product!

    (Please note the sarcasm.)

    --
    Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
  29. Re:The word from Apple by oscast · · Score: 4, Interesting

    "where the staff told him there was nothing Apple could do: his iPod's one-year warranty had expired. But they would be happy to sell him a new model to replace it."

    That article refers to the "Apple's Dirty Little Secret" Web site not Apple's official position. If you listened to the phone call recording that got MASSIVE attention... the support rep suggested that because his iPod fell out of warenty the caller buy a new Apple warenty (costing $250) "but at that cost you might as well buy a new iPod anyways".

    Obviously the support rep didn't say the thing that offerd the most level of comfor to the caller, but that hardly implies that Apple's position was to throw the iPod away.

    Regardless, Apple has since updated the iPod support program to include an iPod battery. Additionally other suppliers have offered replacement batteries for even less than that which Apple sells them for.

    This is all a moot point for the most part because we're talking about the fringe edge of iPod owners anways... only this extremely small number individuals are reporting problems. Thankfully, Apple and theird party companies provide support for this small group.



    "A $50 DIY kit, also documented at popsci.com. Pretty steep."

    Not at all. Batteryies for the Dell's Mp3 player, the archos brand gateway etc all utilize similar pricing structures as Apple and 3rd party companies do for the iPod.

    Replacement batteries for the iPod are very much in sync with battery prices from other major MP3 manufacturers.

  30. Re:No problem...... by oscast · · Score: 4, Insightful

    >>>"As is to be expected, not all things work as planned"

    That's a nice spin on "busted the thing just trying to get to the battery". Better-designed devices for a fraction of the cost have a hatch, or from 2 to 4 screws.


    That's a nice spin on a device that is designed so well that the battery is intended to last the entire life of the product... as the iPod does in the vast majority of the time.



    "Does this warranty cover opening the thing?"

    Not sure... though that is not even necessary. If anything should go wrong with your iPod during its warrenty period an individual need only call Apple, they'll ship you a padded box the following day to mail them the iPod, they will send someone to pick it up, next-day deliever it to Apple where they will fix it that day, then next day it back to you.

    Apple's warrenty service is EXCELLENT.

  31. Margins to end? by OECD · · Score: 3, Informative

    Uberblogger Stephen Den Beste has a post in which he raises doubts that Apple's high margins on hardware (thus, high profits) can continue. He thinks there will be a WinIBM platform in the near future. (WinNT is already running on G5s as an XBox dev platform.) Apple, in his estimation, will be forced to cut margins to compete.

    I don't entirely agree with him. Apple has always commanded a premium because its software was good, not its hardware. Plus, I think he underappreciates OSX's BSD underbelly (odd, for an engineer.) But a WinG5 computer would provide an alternative to people who might otherwise make the switch.

    (I thought I posted this earlier, but it doesn't seem to be showing up. Sorry if this winds up being a repeat post.)

    --
    One man's -1 Flamebait is another man's +5 Funny.
    1. Re:Margins to end? by daviddennis · · Score: 4, Insightful

      That doesn't make sense; people buy Macs for their cool industrial design and software. Windows on an IBM-made G5 processor machine isn't going to be very helpful in either department.

      D

    2. Re:Margins to end? by cilix · · Score: 4, Funny
      Uberblogger Stephen Den Beste has a...

      Do you think he would find this description depressing? I can't think of anything more disappointing than uberness wasted on blogging.

    3. Re:Margins to end? by Onan · · Score: 3, Insightful

      Right, cause that powerpc version of NT 3.51 was such a roaring success, yeah?

  32. Random market caps by Anonymous Coward · · Score: 5, Informative

    > According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already.

    Some random market caps for your amusement, all in 10^9 US$
    - General Electric 329
    - Microsoft: 284
    - Exxon-Mobile: 277
    - Wal-Mart: 261
    - Intel: 189
    - IBM: 166
    - Cisco: 156
    - Coca-Cola: 120
    - Dell: 84
    - HP: 70
    - Time-Warner: 77
    - Disney: 55
    - Ebay: 44
    - Yahoo: 29
    - GM: 27
    - Ford: 26
    - Amazon: 17
    - Sun: 17
    - Apple: 8.9
    - RedHat: 3.2
    - McDonalds: 2.2
    - Gateway: 1.9
    - SCO: 0.17

  33. Re:Apple can never die by cosmo7 · · Score: 3, Funny

    Last time they almost did, Microsoft bailed them out.

    And then they found the hook in the car door handle, proving that the story was true.

  34. Re:iPods not intended to last long at all? by squiggleslash · · Score: 5, Insightful
    An iPod battery is supposed to last a great deal longer than 18 months. Similarly, the screen, touchpad, and case are all designed to last longer than 18 months. Just like batteries, a small handful will not.

    Just be glad Apple is offering a reduced-price repair price for those iPods where one of the non-servicable parts can be replaced out of warranty. Because that's what the battery is.

    Given the choice, I'd rather have a well designed machine with a battery designed to last years, than a poorly designed machine with a replacable battery that lasts months. Obviously, YMMV.

    --
    You are not alone. This is not normal. None of this is normal.
  35. Re:iPods not intended to last long at all? by oscast · · Score: 3, Interesting

    "Are you saying, then, that an iPod is supposed to last only 2 years?"

    Again, the popssi article was reference the ipod dirty little secret web site... an instance which has already been regarded as an obscure instance.

    The life of the ipod will vary depending on the individual that has it. Every single individual I know that has an iPod 5 gig 9the first ipod) say that its serving them very well... no problems whatsoever.



    "That's pretty bad."

    It would be if that were the case. But its not.



    "My existing mp3 players are that old, and I have every expectation that they will last much longer."

    Perhaps, and yet its not entierly unlikely that those MP3 players with batteries have the same life expectancy and reliability as the iPod battery.... which is very good.



    "Of course, I don't have to wreck them in order to deal with battery problems, either."

    Good to know.
    Neither do iPod owners either however.

  36. Re:What a KLUDGE! by jo_ham · · Score: 5, Insightful

    "The company lacks a grasp of certain basics of friendly user-interfaces for gadgets."

    I would say the exact opposite. You turn the iPod on by touching any of the four buttons on the front (or the scroll wheen button), and turn it off in the same way by holding play.

    The iPod has six buttons on its front surface (the trackwheel and select are two buttons.

    None of these buttons has any moving parts - it's all touch sensitive. No mechanical parts to break down during use. The only mechanical switch on the whole unit is the hold switch on the top by the headphone socket.

    Apple's buttons are big and easy to press. I don't have big hands by any stretch of the imagination, but I hate hate hate the current trend of manufactuers to put smaller smaller fiddly buttons on their products. You need a matchstick to press the keys on some cellphones nowadays.

    I fear for the day when I dial a number on my phone and I press all the keys together and the Simpsons quote will come to mind:

    "I'm sorry, your fingers are too fat to dial this number. If you would like to order a complimentary dialing wand please mash the keypad angrily now"

    Or something like that.

    Apple's large buttons are a joy to use, and the interface (from the way the buttons work, to the way the menus on screen work) is second to none.

    Lacking a grasp of friendly user interfaces? Bollocks! It's beautifully designed from a UI perspective.

  37. Re:iPods not intended to last long at all? by allgood2 · · Score: 4, Informative

    Only a small subset of users are finding that their batteries die in 18mo. I purchased my original iPod in November 2001, a week or so after Apple introduced them, and the battery runs perfectly fine over 2 yrs later. Apple's support documents that the battery should be able to with stand 500 charge cycles. Since the average user doesn't totally drain their battery daily, that can work out to a fairly long time. For example, I only have to fully recharge my battery about once a week. Which means I go through 52 recharge cycles per year. If I get a full 500 charges, that's almost 10yrs of battery life.

    Apple recommends recharging the battery every 14-18days, which would extend 500 full recharges even longer. Really for what the Neistat brothers went through, they either had faulty batteries, or were draining their batteries daily, for over a year.

    I consider myself a mid-range user of the iPod, but that's only because their are so many who use their iPods only for trips, etc. I use mine daily, for 4-8hrs a day. When i purchased, I thought the battery might last 3-5years, and so far it's on target.

  38. It's all PERCEPTION by MarcQuadra · · Score: 5, Insightful

    Really, I've dealt with Apple, Compaq, HP, and IBM products in the past two years and Apple's 'problem' rate is as low or lower than the next guy's, the problem is that when an Apple laptop has a minor issue (like 'white spots') the whole community bitches about it.

    When an IBM laptop exhibits a problem there's no 'community' to coagulate into a problem in the first place.

    The G5 is a stunningly quiet machine compared to the Dell P4 machine's we've got at my current site, but Mac users still bitch about it being so much louder than their fanless iMac when they hover around the water cooler. The PC users here just shut up and take what they get and don't complain.

    --
    "Sometimes, I think Trent just needs a cup of hot chocolate and a blankie." -Tori Amos on Nine Inch Nails
  39. Re:Microsoft bailed out Apple by good+soldier+svejk · · Score: 4, Informative

    That is a logical fallacy. An "appeal to authority" to be precise, IIRC. The press saying something is true does not make it true. MS bought 150,000 shares of non-voting preferred stock at $1000 a share. The deal was a show of good faith as part of a larger deal where they agreed to continue development of Mac MS Office for five years an Apple agreed to drop outstanding legal claims and bundle MS Explorer. MS did not agree to develop Office for OS X (Rhapsody, and Cocoa only at the time). The stock payed a dividend and was convertible to common stock at $16.50 after three years. MS ended up converting and selling at a market price of ~$82,IIRC. I can't remember what the dividend was. At the time, Apple had already issued their convertible debenture, sold most of their plant and some ARM holdings. They had over $6 billion in cash and cash equivalents. That is even more than they hold now. Microsoft's investment was merely window dressing. In fact, I don't see that Apple got much out of it at all. MS clearly had no plans to drop Office. They far exceeded the terms of their agreement by developing an OS X version.

    --
    It is cowardly, and a betrayal of whatever it means to be a Jew, to act as a white man

    -James Baldwin
  40. Stop blaming Apple by Anonymous Coward · · Score: 2, Insightful

    Apple didn't make the copyright laws that essentially force them to negotiate for separate licensing/distribution rights in every friggin' country they want to set up the iTMS.

    Trust me, if it wasn't for the record companies, iTMS would have been global from day one. Every day they're not able to sell DRM'd AAC somewhere is another day that shit-ass WMA has to entrench itself there.

  41. Re:The word from Apple by MoneyT · · Score: 3, Informative

    From apple.com

    If your iPod is out-of-warranty and the battery's ability to hold an electrical charge has diminished 50% or more from its original condition, you can receive a replacement iPod for $99, plus $6.95 shipping. Be sure to follow all of the battery troubleshooting steps before submitting your iPod for battery replacement.

    --
    T Money
    World Domination with a plastic spoon since 1984
  42. Re:It is no joke by Anonymous Coward · · Score: 3, Insightful

    Apple has yet to solve the battery problem.

    Yeah, and /. has yet to solve the village idiot AC troll problem.

  43. Car Computer comparisons by valkraider · · Score: 3, Interesting

    This argument is 100% true, since the PCs that have these also have the same things that the Macs have (like dvd, cd, etc). It is just an example of "getting more". This does not mean that the PC is better overall. It just means that it is better in this regard. You can't deny that a Porsche without air conditioning is inferior in a certain way to a Chevy with air conditioning.

    Actually - it's different. Air-conditioning on a car is an integral part of the car - and is near to impossible to add after-market. Thus the lack of air-conditioning is a negative. But a USB floppy drive can be had for as little as $25 for a name brand (iomega). So lets use $2000 as the average price of a Mac, and you have a little over 1% of the cost of it to add floppy capabilities without any hardware modifications. For the car version that would mean that for a $50,000 porsche you would have to add a fully functional air conditioning for just over $500. Not possible. And another benefit to the Mac - with that $25 USB floppy drive you can read PC *and* Mac floppy disks seamlessly, while PCs can't read Mac floppies. So the question is - why include a $25 accessory that is used by almost no one anymore? (I have floppy drives in my work PCs and one at home, and I have not touched them in more than 2 years). Since the bootable CD - floppies are obsolete. But if you need one, you are welcome to buy one.

    Yes, this is true. It is an example of "more for the money". You get standard printer AND serial ports along with all the USBs.

    It is very hard for a regular consumer to find a printer that needs a Parallel port anymore. In fact, my last 4 printers - going back to pre-1999 - have all been USB. My current one supports USB/USB2/Firewire. No Parallel. And regarding serial... What a pain in the arse that was... Configuring external serial devices on PCs was worse than a root canal given by my 2 year old... Who needs serial anymore? GPS devices come with USB now, Cell Phones come with Bluetooth or USB now, Modems and network equipment come with USB now, what is your justification for needing serial - besides supporting legacy equipment. Of course, there are USB->serial adapters for those who absolutely have to have them. You say that having more is better - so why not include ALL the old standards? Why not have an EGA and CGA video out? Why not have SCSI on every box? What about MicroChannel? Controller/joystick ports on sound cards... Networking? Why not Token Ring... Lets include everything now... Consumers LOVE to look at the back of a computer and see 129 different places they could plug stuff into. I don't even know why PCs still jave PS2 mouse and keyboard ports...

    Again, it is like a chevy with 3 cig lighter plugs compared to a Porsche with just one. At least in this aspect, the chevy has something the Porsche lacks. Repeat after me: having more available options is better.

    Well, that comparison doesn't work either... It is more like the chevy having 5 different ways to plug things in, and the porsche only having one. It is not important when the majority of things only need the one - and anything else usually has an adapter, or you can get an adapter... The Mac has just as many "interface" options as the PC, they just don't put them on every single Mac.

    But I guess you would prefer an RV fully decked out with everything you *could* need, and I would prefer a mini-van and a couple highly specific adapters... I'll get better handling and mileage and top-speed 99% of the time, and 1% of the time I will be inconvenienced by needing an invertor to run an appliance or something... You will always have what you need at your fingertips - but will always be big, slow, heavy, and hard to park...

    :) We'll both get where we are going.

  44. Re:hopefully by increasing volume not margins by Lars+T. · · Score: 2, Insightful

    What exactly would you need the PC Card slot for? Modem? Ethernet? Firewire? USB? WiFi?

    --

    Lars T.

    To the guy who modded me down from perfect to terrible Karma - Apple haters still suck

  45. Re:Microsoft bailed out Apple by Llywelyn · · Score: 3, Informative

    >MS clearly had no plans to drop Office.

    I'm not so sure on this. The Mac version had languished behind at 6.0 (remember how much that sucked? I claim the last good version of MS Word was 5.1a) and MS had made no noise about updating it for a long time when that deal was made.

    That said, what Apple primarily got was a public acknowledgment that they were going to be there in 3 years and a new version of office that was *much* improved. It gave the public confidence in Apple, something that isn't precisely measurable in price.

    --
    Integrate Keynote and LaTeX
  46. Once they hit $10B... by SensitiveMale · · Score: 3, Funny

    maybe they can lose the 'beleaguered' moniker.

  47. Re:There is no problem by squiggleslash · · Score: 3, Insightful
    Then you'll not buy anything. Virtually everything in engineering is built to a specific lifetime. The most expensive component is built to last a certain length of time, and everything else is specced to last at least as long, but no longer if making it last longer would increase costs.

    It's not a giant conspiracy, it's sensible regulation of costs. Is there much point in building an iPod where the battery lasts a hundred years, and costs $5,000, but the screen only lasts for two?

    --
    You are not alone. This is not normal. None of this is normal.
  48. Re:hopefully by increasing volume not margins by Endive4Ever · · Score: 3, Funny

    Everything is invented at Apple first. Therefore you can remain confident that if something were to be invented, Apple would include it in your shiney new Apple system. Since you'd have to wait until later for some scurrilous copy-cat company to produce a version of it for the non-Apple market, you'd already have it on your Shiny New Mac.

    Or something to that effect.

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  49. Re:It is the only thing by Endive4Ever · · Score: 2, Interesting

    My Windows 2000 machine has occasionally crashed (generally it's been a hardware problem), and it does get balky if I run it for a week or two and forget to reboot it, but it has never, ever, crashed in the fashion that's come to be known as the 'Blue Screen Of Death,' which is an NT 4.0 phenomenon.

    You need to get outta the 90's with your criticisms, dude. Do you still refer to the Apple competition as 'IBM'?

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  50. Re:Car Computer comparisons by mkldev · · Score: 4, Interesting
    I would content that the lack of the floppy drive in Macs is more closely likened to the lack of a cigarette lighter in most automobiles. (Most have a DC outlet with a cover plug, and the lighter is an optional add-on.)

    First, both are minor parts of the vehicle's functionality. Second, they're features that most people don't want or need. Third, they're features that the people who do want them really shouldn't be using in the first place, as they are harmful to your health (or at least the reliability of your data and/or your ability to concentrate on the road).

    And we didn't abandon SCSI. Your firewire hard drive uses SBP2. That's SCSI commands sent over a serial tunnel. Want to know what your CD/DVD drive uses? ATAPI. That's SCSI packets encapsulated into ATA requests.

    SCSI is like the force. "If you kill me, you will only make me stronger." And so, in effect, by abandoning the actual parallel SCSI physical transport (which really sucked, IMHO), the SCSI protocol (which doesn't) lives on in nearly every computer built in the past several years, PC or Mac.

    But I digress.

    --
    120 character sigs suck. Make it 250.
  51. Re:Build quality has to improve. by leperkuhn · · Score: 2, Informative

    While there were several problems that were identified with different models, Apple certainly handled them very well. They shipped me a new power supply for free because of my G4. They've swapped out screens on Powerbooks and extended the iBook warrentee to 3 years for time frames where a problem was identified.
    A customer isn't always dissatisfied when there is a problem, but is always royally pissed off when the company does nothing to solve his problem. Despite my loud G4, I still purchased a new iBook 4 days ago, and it's a terrific machine.

    --
    http://www.rustyrazorblade.com