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Apple Analyst Meeting 2003
http://www.apple.com/quicktime/qtv/analystmeeting03/
Apple posted a quicktime stream of their 2003 Analyst Meeting.
Relevant quotes from the Q&A Session:
Q: "Any plans to support or license WMA going forward?"
Jobs: "We decided to support an open audio codec standard rather than a proprietary one." (AAC) .... "That's our plan and we're sticking to it. We're feeling real good about it too".
Q: "Are you going to allow the iTunes to work with other devices and conversely are you going to allow the iPod to work with other online Music Services?"
Jobs: "We don't know. Right now, there is really little reason to. The iPod is the #1 MP3 player in the world .... The iTunes music store works with the most popular music player around and that's working really well for us. Conversely the iPod is working with the #1 music store. Soundscan just released data today and alst week the itms had over an 80% market share for all legally downloaded music. Why should we work with another music store when we're working with the "Microsoft" of music stores. So, right now we've got an 80%+ share in our music store and we're #1 in units and of course revenue in the iPod. We're investing a lot in that. Got some great stuff coming out over the next... uh... timeframes. And so, right now there's really not reason to spend that engineering on working with #2 or #3 or #4. I'd rather spend our engineering dollars on enhancing the iPod and enhancing the iTunes Music Store. .... Maybe there'll be a reason someday and we're flexible, but right now I think we're spending our money on the path of least resistance to do the right thing."
Q: Question regarding PowerPC/Intel and Mac OS X
Jobs: "Right now we don't see a compelling need to switch processor families and the stuff that's in the PowerPC roadmap -- which you might have heard about already -- is really good, I can't talk about it, but it's really good what's coming."
Q: Can you talk about iPod Pricing, Competitors, Plans for iPod and iTunes pricing.
Jobs: "Apple is as good or better a manufacturer than Dell" .... "We don't worry about anyone beating us on manufacturing or logistical efficiency. And one of the things to remember is that Dell does not sell through channels. Well, When you get down to a consumer product like an iPod, how do most people buy those things? They go to a store, they plunk down their credit card, and they walk away with the product. Most people do not call an 800 number and expect to get it a week later." ...."Cash and carry distribution becomes very important, and you have to pay for that." .... "You'll see some differentials in pricing from companies who only sell through the web and through a catalog vs companies that make the product available to the customer where they want to buy it." .... "But we think we've got the strategic advantage" .... "We're not concerned about pricing at all. We can be as aggressive as the next guy can and more aggressive than most. And we're not concerned about engineering" Goes on the say the other products aren't as good as the iPod.
Re iTunes: "Most of the money goes to the music companies. We are the largest by far" .... "We would like to break even/make a little bit of money but it's not a money maker. That's why when I look at Roxio with Napster and MusicMatch, These guys can never make money. They've started money losing businesses and I'm perplexed as to why." ... "They don't make iPods, so they don't have a related business where they do..."
Q: TVs and Computers?
Jobs: "This is not a new thing. People have been working on this for years. Apple was the first company to ever do this. And there is a small audience that likes this. It is not a large audience" .... "People want 42" and above plasma screens on their wall and they want to view them from far away with their friends or family" "And generally, what they want to view on their television has to do with turning their minds off" .... "Now how do I want to work on my computer? Do I want to work on it 6 feet, 8 feet, 10 feet away with my buddies? No, I want to work on it a few inches away by myself. It's a very very very different experience. We've always believed that this convergence between the computer and the television wasn't going to work. We do believe that there's room for people watching some television on a computer now and then. And we do believe there's a vast opportunity to make televisions more intelligent and home entertainment systems more intelligent and easier to use. But that does not mean that computers and televisions are coming together. And, um, the media center -- basically every young person already has their stereo on your computer - that has come together." .... "but television's another animal. And we don't see it happening in a mass way"
Q: Re: Digital Lifestyle applications. The competition is starting to make some inroads. So, how do you stay ahead? And what is the next big wave?
Jobs: "The way we stay ahead is we stay really close to the customer and keep doing what we do well. For example, digital photo apps. iPhoto is the king of that but even iPhotos have limitations that people are running up against - some major ones - those need to be solved." .... "And there are new categories of applications that people don't even think of yet, that we're working on. So, believe me, we have a lot of innovation up our sleeve when it comes the digital lifestyle/digital hub class of applications - a LOT. And, um, you'll be seeing some of it next year. Very strong stuff."
Relevant quotes from the Q&A Session:
Q: "Any plans to support or license WMA going forward?"
Jobs: "We decided to support an open audio codec standard rather than a proprietary one." (AAC) .... "That's our plan and we're sticking to it. We're feeling real good about it too".
Q: "Are you going to allow the iTunes to work with other devices and conversely are you going to allow the iPod to work with other online Music Services?"
Jobs: "We don't know. Right now, there is really little reason to. The iPod is the #1 MP3 player in the world .... The iTunes music store works with the most popular music player around and that's working really well for us. Conversely the iPod is working with the #1 music store. Soundscan just released data today and alst week the itms had over an 80% market share for all legally downloaded music. Why should we work with another music store when we're working with the "Microsoft" of music stores. So, right now we've got an 80%+ share in our music store and we're #1 in units and of course revenue in the iPod. We're investing a lot in that. Got some great stuff coming out over the next... uh... timeframes. And so, right now there's really not reason to spend that engineering on working with #2 or #3 or #4. I'd rather spend our engineering dollars on enhancing the iPod and enhancing the iTunes Music Store. .... Maybe there'll be a reason someday and we're flexible, but right now I think we're spending our money on the path of least resistance to do the right thing."
Q: Question regarding PowerPC/Intel and Mac OS X
Jobs: "Right now we don't see a compelling need to switch processor families and the stuff that's in the PowerPC roadmap -- which you might have heard about already -- is really good, I can't talk about it, but it's really good what's coming."
Q: Can you talk about iPod Pricing, Competitors, Plans for iPod and iTunes pricing.
Jobs: "Apple is as good or better a manufacturer than Dell" .... "We don't worry about anyone beating us on manufacturing or logistical efficiency. And one of the things to remember is that Dell does not sell through channels. Well, When you get down to a consumer product like an iPod, how do most people buy those things? They go to a store, they plunk down their credit card, and they walk away with the product. Most people do not call an 800 number and expect to get it a week later." ...."Cash and carry distribution becomes very important, and you have to pay for that." .... "You'll see some differentials in pricing from companies who only sell through the web and through a catalog vs companies that make the product available to the customer where they want to buy it." .... "But we think we've got the strategic advantage" .... "We're not concerned about pricing at all. We can be as aggressive as the next guy can and more aggressive than most. And we're not concerned about engineering" Goes on the say the other products aren't as good as the iPod.
Re iTunes: "Most of the money goes to the music companies. We are the largest by far" .... "We would like to break even/make a little bit of money but it's not a money maker. That's why when I look at Roxio with Napster and MusicMatch, These guys can never make money. They've started money losing businesses and I'm perplexed as to why." ... "They don't make iPods, so they don't have a related business where they do..."
Q: TVs and Computers?
Jobs: "This is not a new thing. People have been working on this for years. Apple was the first company to ever do this. And there is a small audience that likes this. It is not a large audience" .... "People want 42" and above plasma screens on their wall and they want to view them from far away with their friends or family" "And generally, what they want to view on their television has to do with turning their minds off" .... "Now how do I want to work on my computer? Do I want to work on it 6 feet, 8 feet, 10 feet away with my buddies? No, I want to work on it a few inches away by myself. It's a very very very different experience. We've always believed that this convergence between the computer and the television wasn't going to work. We do believe that there's room for people watching some television on a computer now and then. And we do believe there's a vast opportunity to make televisions more intelligent and home entertainment systems more intelligent and easier to use. But that does not mean that computers and televisions are coming together. And, um, the media center -- basically every young person already has their stereo on your computer - that has come together." .... "but television's another animal. And we don't see it happening in a mass way"
Q: Re: Digital Lifestyle applications. The competition is starting to make some inroads. So, how do you stay ahead? And what is the next big wave?
Jobs: "The way we stay ahead is we stay really close to the customer and keep doing what we do well. For example, digital photo apps. iPhoto is the king of that but even iPhotos have limitations that people are running up against - some major ones - those need to be solved." .... "And there are new categories of applications that people don't even think of yet, that we're working on. So, believe me, we have a lot of innovation up our sleeve when it comes the digital lifestyle/digital hub class of applications - a LOT. And, um, you'll be seeing some of it next year. Very strong stuff."
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