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The iPod


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									Reykjavik University                               Spring 2006
New Technology

                          The iPod

Teacher:                      Author:
Ólafur Andri Ragnarsson       Óskar Kristinn Jensson
New Technology                           The iPod                               Spring 2006

      Introduction .................................................................. -2-
      1.0    The Walkman ........................................................ -3-
      2.0    The iPod ............................................................... -4-
             2.1       The introduction ............................................ -4-
             2.2       History ......................................................... -4-
             2.3       Functionality ................................................. -6-
             2.4       Advertising ................................................... -7-
      3.0    The future ............................................................ -9-
      4.0    Final words .......................................................... -11-

Reykjavik University                Óskar Kr. Jensson                                   -1-
New Technology                    The iPod                       Spring 2006

The iPod is a brand of music players designed and marketed by Apple
computer. Devices in the iPod family provide a simple user interface
designed around a central scroll wheel. The standard iPod model stores
media on built in hard drive, while the iPod Shuffle and iPod Nano use
flash memory. iTunes is a service for file sharing from Apple. With
iTunes users can download music, photos and videos to their iPod.

I have been curious and wanted to find out what makes the iPod so
special. In this paper I am going to study it’s predecessor, it’s history
and take a look into the future and try to figure out what makes the
iPod so popular.

When this paper is written the iPod has been on the market for over 4
years and is today dominant in the world of portable music players.

"The iPod is the first cultural icon of the twenty first century. There is
nothing else like it in terms of the mix of style, functionality and
consumer desire. The technology is appealing because it can be
programmed very quickly and easily. This is a market leader and, like
the Walkman before, it will change the way people manage their
experience of music in urban space. It allows users to listen to
whatever they want non-stop, providing a soundtrack to their

Reykjavik University          Óskar Kr. Jensson                         -2-
New Technology                   The iPod                      Spring 2006

1.0 The predecessor (The Walkman)
The Walkman is a Sony brand which covers their portable players. The
name comes from the first portable player which was named The

The original Walkman became famous for bringing about a change in
the listening of music, allowing people to carry their own choice of
music with them.
The Walkman which was put on the market 1979 was not the first,
another portable music player was introduced 2 years before, but the
Walkman was the most popular one.

Walkman became a brand name for their diverse range of portable
music players. These included :
      Original Walkman (1979)
      CD, also known as Discman (1984)
      Network Walkman. (Used flash memory)
      NW-HD1, NW-HD3, NW-HD5. (Using hard-drive)

The NW-HD1 to 5 where made to challenge the iPod from Apple. But
the players where so flawed that they discontinued their production.
Their latest Walkman is available in 6 or 20 GB versions.
Sony is now betting on embedding phones and music players. They
claim they have sold more than 3 million Walkman phones by 2006.

Reykjavik University         Óskar Kr. Jensson                         -3-
New Technology                   The iPod                       Spring 2006

2.0 The iPod

2.1 The introduction of the iPod
It was unveiled by CEO Steve Jobs on October 23, 2001 as a Mac-
compatible product with a 5 GB hard drive that put “1,000 songs in
your pocket.”

"This is going to be the hottest gift this holiday season" for Mac fans,
Chief Executive Steve Jobs said when he introduced the device.

At the time there was some sceptisism regarding iPod’s price tag that
was 399$.
"Clearly Apple is following Sony's lead by integrating consumer
electronics devices into its marketing strategy, but Apple lacks the
richness of Sony's product offering. And introducing new consumer
products right now is risky, especially if they cannot be priced
attractively," [3].
Other analyst’s guessed that Apple would have difficulty getting a
niche of the market.

2.2 History
Development of the iPod grew out of Apple’s digital hub strategy, as
the company was creating software applications for the growing
number of digital devices being snapped up by consumers. While
digital cameras, camcorders and organizers had well-established
markets, the company found digital music players lacking in quality
and Apple decided to develop its own. Apple’s Hardware engineering
chief Jon Rubinstein assembled a team of engineers to design and

Reykjavik University         Óskar Kr. Jensson                         -4-
New Technology                   The iPod                      Spring 2006

build the first iPod in less than a year, with Tony Fadell and Michael
Dhuey as the principal hardware engineers.

In 2002, Apple released the second-generation iPod in two versions,
one for Mac users and one for Windows users. The only difference
though was the bundled software, since there was no iTunes for
Windows at the time, the Windows iPods came packaged with
Musicmatch software. The actual iPods could work with either system.
Apple got Dell and Target to resell the iPod. Dell selling iPod’s through
Dell's direct retail channel and Target through 1,100-plus Target
In 2003, Apple released third-generation iPods that included a single
CD that included a Windows version of the iTunes software along with
the Mac version.
As of October 2004, iPod dominated digital music player sales in the
United States, with over 90% of the market for hard-drive-based
players and over 70% of the market for all types of players.
The iPod has sold at a tremendous rate, now past 42 million units
since its release. Apple and several industry analysts have posited that
the iPod has a "halo effect", encouraging users of non-Apple products
to switch to other Apple products, such as to Macintosh computers.

Reykjavik University         Óskar Kr. Jensson                           -5-
New Technology                   The iPod                       Spring 2006

2.3 Functionality
Apple designed the iPod to work with the iTunes media library
software, which lets users manage the music libraries on their
computers and on their iPods. iTunes can automatically synchronize a
user's iPod with specific playlists or with the entire contents of a music
library each time an iPod connects to a host computer.

The iPod can play MP3, WAV, M4A/AAC LC, Protected AAC, AIFF,
Audible audiobook and Apple Lossless audio file formats. The fifth-
generation iPod can also play .m4v (H.264) and .mp4 (MPEG-4) video
file formats.

Mac users can synchronize their contacts and schedules Address Book
and iCal to their iPods through iSync. With the 2005 release of iTunes
5.0, Apple integrated contact/schedule syncing into iTunes and added
the ability for Windows users to synchronize their contacts and
schedules from Microsoft Outlook and Outlook Express.

All iPods come with earbud headphones with distinctive white cords
and earbuds, a color chosen to match the design of the original iPod.
The white cords have become symbolic of the iPod brand, and
advertisements for the devices feature them prominently. Despite the
fact that new generations of the iPod now appear in black as well as
white, the cords still remain white.

Some of the accessories available for iPod are : Radio Remote,
Universal Dock (for charging or syncing), AV Connection Kit (to
connect to home stereo or television), Camera Connector (for transfer
from Digital Camera to the iPod for viewing and storing).

Reykjavik University         Óskar Kr. Jensson                         -6-
New Technology                       The iPod                   Spring 2006

      AV Connection Kit                      Camera Connector

2.4 Advertisment
The catch-line for the iPod has always been how many songs it can
carry and not the size of the hard drive or other technical terms. That
is much simpler than how many GB the hard disk is.

Apple’s primary means of advertising the iPod is with silhouetted
figures who lose themselves in the music, with neon-coloured
backgrounds and their all-white iPods.
The commercials include television commercials, print ads, posters in
public places and wrap advertising campaigns, and are unified by a
distinctive, consistent style.
This kind of advertising seemed to get through to the teenagers as
Apple where struggling to meet demand for the sleek white and silver

Reykjavik University             Óskar Kr. Jensson                     -7-
New Technology                   The iPod                       Spring 2006

During the Winter Olympics 2006 the iPod got much free publicity.
Many athletes used iPods during practice, before- and even during
competition. One of these where Hannah Teter who won gold in
halfpipe while listening to her iPod. The U.S. snowboarding team’s
pinstriped uniforms are already wired for the machines, with a nifty
iPod-size pocket, speakers in the hood and a control panel on the left
sleeve that allows the athletes to select songs.

As one journalist put it regarding iPods success:
“In fact, at least six factors make the iPod such a hit: cool-looking
hardware; a fun-to-use, variable-speed scroll wheel; an ultrasimple
software menu; effortless song synchronization with Mac or Windows;
seamless, rock-solid integration with an online music store (iTunes);
and a universe of accessories. Mess up any aspect of the formula, and
your iPod killer is doomed to market-share crumbs.”[7]

Reykjavik University         Óskar Kr. Jensson                          -8-
New Technology                               The iPod                                 Spring 2006

3.0 The Future

                                             iPod Sales





   8.000.000                                                                           iPod Sales




               2003   2004   2004   2004   2004 2005      2005   2005   2005   2006
                Q4     Q1     Q2     Q3     Q4   Q1        Q2     Q3     Q4     Q1

As seen in the chart the iPod sales has strengthened for the entire
time and having the last quarter as the strongest so far. This does not
mean though that this trend will continue. The iPod has many
competitors. Among them are , Samsung, Creative and Microsoft. It
will be difficult to hold on to their current market share and it is more
likely that the iPod will loose some market share with so many
competitors making iPod clones.

Some have pointed out that Apple focusing so many resources and
money on marketing the iPod will be bad for the company in the long
run since they are loosing focus on what has been their main source of
income, the iMac. The sale of iMac has though increased between
2005 Q4 and 2006 Q4 by 20 percent.

The mobile phone has been invoked as a potential iPod “killer”, since
more and more mobile phones offer music storage. But a dedicated

Reykjavik University                   Óskar Kr. Jensson                                      -9-
New Technology                  The iPod                      Spring 2006

music player will always outperform a hybrid one. Also Apple has
struck a deal with Motorola, which has devised a handset compatible
with the iTunes software that runs the iPod.

There are increasing concerns regaring hearing loss when listening to
the iPod. The iPod can produce sounds of up to 115 decibels even
though some studies suggest that listening to music at that level for
28 seconds a day can cause damage over time. A man in Louisiana
has filed a suit against Apple for not taking adequate steps to prevent
hearing loss. This is a suit that could cost Apple considerable amount
of money.

Reykjavik University        Óskar Kr. Jensson                       - 10 -
New Technology                    The iPod                      Spring 2006

4.0 Final words
The reason for Apple’s success so far in my opinion:
Good advertising
      -   Silhouette campaign
      -   TV advertising using those figures.
      -   The right people using iPods making it cool for other.
Family and friends has one.
Good reviews.
Good package (iTunes, ease of use, lots of accesories)

I would think that iPods sale will be less in the future and that the
competitors will get a bigger slice of the market.
They will though remain the largest seller of portable digital players for
the next years at least.

Reykjavik University          Óskar Kr. Jensson                         - 11 -
New Technology                  The iPod                      Spring 2006

iPod. (2006). Wikipedia. Retrieved March 3, 2006,

Walkman. (2006) . Wikipedia. Retrieved March 3, 2006,

Fried, Ian. Apple's iPod spurs mixed reactions. (2001).
Retrieved March 10, 2006,

Fried, Ian. Dell selling Apple's iPods. (2002). Retrieved
March 11, 2006,

Tucker, Abigail. A sponsorship waiting to happen. (2006). Baltimore
Sun. Retrieved March 3, 2006,,0,4694509.story?track=rss

Wheeler, Brian. Apple emerges from the Pod. (2003). BBC News
Magazine. Retrieved March 18, 2006,

Pogue, David. Almost iPod, but in the end a Samsung. (2006). ZDNet
Insdustry News. Retrived March 10, 2006,

Reykjavik University        Óskar Kr. Jensson                         - 12 -
New Technology                  The iPod                    Spring 2006

The device that ate everything?. (2005). Retrieved
February 20, 2006,

iPod professor tunes into music on the move. (2004). University of
Sussex. Retrieved February 16, 2006,

Apple iPod silhouette commercials. (2006). Wikipedia, The Free
Encyclopedia. Retrieved March 20, 2006,

Apple faces suit over iPod-related hearing loss. (2006).
Retrieved February 18, 2006,

Apple enjoys ongoing iPod demand. (2006). BBC News. Retrieved
March 19, 2006,

Reykjavik University        Óskar Kr. Jensson                        - 13 -

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