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| Ipod
Info Page |
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iPod |

The current iPod line consists of
(from left to right) the iPod shuffle, iPod nano,
iPod classic and iPod touch. |
| Manufacturer |
Apple Inc. |
| Type |
Portable media player |
| Retail availability |
2001 |
| Units sold |
Over 110 million units
worldwide, as of September 2007 |
| Online service |
iTunes Store |
iPod is a brand of portable media players
designed and marketed by Apple and launched in
October 2001. The line-up currently consists of the
original style hard drive-based flagship iPod
classic, the iPhone-like iPod touch, the mid-level
video-capable iPod nano, and the low-end screenless
iPod shuffle. Former products include the compact
iPod mini (replaced by the iPod nano) and the
high-end spin-off iPod photo (re-integrated into the
main iPod classic line). The current iPod classic
models store media on an internal hard drive, while
all other current models use flash memory to enable
their smaller size. As with many other digital music
players, iPods can also serve as external data
storage devices.
Apple's iTunes software is used to transfer music
to the devices. As a jukebox application, iTunes
stores a music library on the user's computer and
can play, burn, and rip music from a CD. It also
transfers photos, videos, games, and calendars to
those iPod models that support them. Apple focused
its development on the iPod's unique user interface
and its ease of use, rather than on technical
capability. As of September 2007, the iPod had sold
over 110 million units worldwide (stated in "The
Beat Goes On" conference) making it the best-selling
digital audio player series in history.
History and design
iPod came from Apple's digital hub strategy, when
the company began creating software for the growing
market of digital devices being purchased by
consumers. Digital cameras, camcorders and
organizers had well-established mainstream markets,
but the company found existing digital music players
"big and clunky or small and useless" with user
interfaces that were "unbelievably awful," so Apple
decided to develop its own. Apple's hardware
engineering chief, Jon Rubinstein, assembled a team
of engineers to design it, including Tony Fadell,
hardware engineer Michael Dhuey, and design engineer
Jonathan Ive, with Stan Ng as the marketing manager.
The product was developed in less than a year and
unveiled on October 23, 2001. CEO Steve Jobs
announced it as a Mac-compatible product with a 5 GB
hard drive that put "1000 songs in your pocket."
Uncharacteristically, Apple did not develop
iPod's software entirely in-house. Apple instead
used PortalPlayer's reference platform which was
based on 2 ARM cores. The platform had rudimentary
software running on a commercial microkernel
embedded operating system. PortalPlayer had
previously been working on an IBM-branded MP3 player
with Bluetooth headphones. Apple contracted another
company, Pixo, to help design and implement the user
interface, under the direct supervision of Steve
Jobs. Once established, Apple continued to refine
the software's look and feel. Starting with iPod
mini, the Chicago font was replaced with Espy Sans.
Later iPods switched fonts again to Podium Sans — a
font similar to Apple's corporate font Myriad. iPods
with color displays then adopted some Mac OS X
themes like Aqua progress bars, and brushed metal in
the lock interface. In 2007, Apple modified the iPod
interface again with the introduction of the
sixth-generation iPod classic and third-generation
iPod nano by changing the font to Helvetica, and in
most cases, splitting the screen in half by
displaying the menus on the left and album artwork,
photos, or videos on the right (whichever was
appropriate for the selected item).
The name iPod was proposed by Vinnie Chieco, a
freelance copywriter, who (with others) was called
by Apple to figure out how to introduce the new
player to the public. After Chieco saw a prototype,
he thought of the movie 2001: A Space Odyssey and
the phrase "Open the pod bay door, Hal!", which
refers to the white EVA Pods of the Discovery One
spaceship. Joseph N. Grasso of New Jersey had
originally listed an "ipod" trademark with the U.S.
Patent and Trademark Office in July 2000 for
Internet kiosks. The first ipod kiosks had been
demonstrated to the public in New Jersey in March
1998, and commercial use began in January 2000. The
trademark was registered by the USPTO in November
2003, and Grasso assigned it to Apple Computer, Inc.
in 2005.
Software
iPod can play MP3, AAC/M4A, Protected AAC, AIFF,
WAV, Audible audiobook, and Apple Lossless audio
file formats. The iPod photo introduced the ability
to display JPEG, BMP, GIF, TIFF, and PNG image file
formats. Fifth and sixth generation iPod classics,
as well as third generation iPod nanos, can
additionally play MPEG-4 (H.264/MPEG-4 AVC) and
QuickTime video formats, with restrictions on video
dimensions, encoding techniques and data-rates.
Originally, iPod software only worked with Macs;
however, starting with the second generation model,
iPod software worked with Windows and Macs. Unlike
most other media players, Apple does not support
Microsoft's WMA audio format — but a converter for
WMA files without Digital Rights Management (DRM) is
provided with the Windows version of iTunes. MIDI
files also cannot be played, but can be converted to
audio files using the "Advanced" menu in iTunes.
Alternative open-source audio formats such as Ogg
Vorbis and FLAC are not supported without installing
custom firmware onto the iPod.
The iPod is associated with one host computer.
Each time an iPod connects to its host computer,
iTunes can synchronize entire music libraries or
music playlists either automatically or manually.
Song ratings can be set on the iPod and synchronized
later to the iTunes library, and vice versa.
User interface
The iPod's signature Click Wheel.
iPods with color displays use anti-aliased
graphics and text, with sliding animations. Classic
iPods have five buttons and the later generations
have the buttons integrated into the click wheel —
an innovation which gives an uncluttered, minimalist
interface. The buttons perform basic functions such
as play, next track, etc. Other operations such as
scrolling through menu items and controlling the
volume are performed by using the click wheel in a
rotational manner. iPod shuffle does not have a
click wheel and instead has five buttons positioned
differently from the larger models. iPod touch uses
no buttons for any of these functions, instead
relying on the same Multi-touch input style as the
iPhone.
iTunes Store
The iTunes Store is an online media store run by
Apple and accessed via iTunes. It was introduced on
April 29, 2003 and it sells individual songs, with
typical prices being US $0.99, AU $1.69 (inc. GST),
NZ $1.79 (inc. GST), €0.99 (inc. VAT), or £0.79
(inc. VAT) per song. Since no other portable player
supports the DRM used, only iPods can play protected
content from the iTunes store. The store became the
market leader soon after its launch and Apple
announced the sale of videos through the store on
October 12, 2005. Full-length movies became
available on September 12, 2006.
Purchased audio files use the AAC format with
added encryption. The encryption is based on the
FairPlay DRM system. Up to five authorized computers
and an unlimited number of iPods can play the files.
Burning the files onto an audio CD, then
re-compressing can create music files without the
DRM, although this results in reduced quality. The
DRM can also be removed using third-party software.
However, in a deal with Apple, EMI began selling DRM-free,
higher-quality songs on the iTunes Stores, in a
category called "iTunes Plus." While individual
songs were made available at a cost of US$1.29, 30¢
more than the cost of a regular DRM song, entire
albums were available for the same price, US$9.99,
as DRM encoded albums. On October 17, 2007, Apple
lowered the cost of individual iTunes Plus songs to
US$.99 per song, the same as DRM encoded tracks.
iPods cannot play music files from competing
music stores that use rival-DRM technologies like
Microsoft's protected WMA or RealNetworks' Helix DRM.
Example stores include Napster and MSN Music.
RealNetworks claims that Apple is creating problems
for itself by using FairPlay to lock users into
using the iTunes Store. Steve Jobs has stated that
Apple makes little profit from song sales, although
Apple uses the store to promote iPod sales. However,
iPods can also play music files from online stores
that do not use DRM, such as eMusic or Amie Street.
On July 3, 2007, Universal Music Group decided
not to renew their contract with the iTunes music
store. Universal will now supply iTunes in an 'at
will' capacity.
On September 5, 2007, at Apple's Media Event
entitled "The Beat Goes On...", the company debuted
the iTunes Wi-Fi Music Store which allows one to
access the Music Store from either iPhone or the new
WiFi-enabled iPod Touch and download songs directly
to the device. When you next sync the device with
iTunes, any purchased music is copied onto your
iTunes Library.
File storage and
transfer
With the exception of the iPod touch, all iPods
can function as mass storage devices to store data
files. If the iPod is formatted on a Mac OS X
computer it uses the HFS+ file system format, which
allows it to serve as a boot disk for a Mac
computer. If it is formatted on Windows, the FAT32
format is used. With the advent of the
Windows-compatible iPod, iPod's default file system
switched from HFS+ to FAT32, although it can be
reformatted to either filesystem (excluding the iPod
shuffle which is strictly FAT32). Generally, if a
new iPod (excluding the iPod shuffle) is initially
plugged into a computer running Windows, it will be
formatted with FAT32, and if initially plugged into
a Mac running Mac OS X it will be formatted with HFS+.
Unlike many other MP3 players, simply copying
audio or video files to the drive with a typical
file management application will not allow iPod to
properly access them. The user must use software
that has been specifically designed to transfer
media files to iPods, so that the files are playable
and viewable. Aside from iTunes, several alternative
third-party applications are available on a number
of different platforms.
iTunes 7 and above can transfer purchased media
of the iTunes Store from an iPod to a computer,
provided that the DRM media is transferred to any of
the five computers allowed for authorization with
DRM media.
Media files are stored on the iPod in a hidden
folder, together with a proprietary database file.
The hidden content can be accessed on the host
operating system by enabling hidden files to be
shown. The audio can then be recovered manually by
dragging the files or folders onto the iTunes
Library or by using third-party software.
Hardware
Chipsets and
electronics
Microcontroller
 | iPod first to third generations — Two
ARM 7TDMI-derived
CPUs running at 90 MHz. |
 | iPod fourth and fifth generations, iPod mini,
iPod nano first generation — Variable-speed ARM
7TDMI CPUs, running at a peak of 80 MHz to save
battery life. |
 | iPod nano second generation — Samsung
System-On-Chip, based around an ARM processor. |
 | iPod shuffle first generation —
SigmaTel STMP3550 chip that handles both the music
decoding and the audio circuitry. |
Audio chip
 | All iPods (except the shuffle and 6G) use
audio codecs developed by
Wolfson Microelectronics. |
 | Sixth generation iPods use a
Cirrus Logic audio codec chip. |
Storage medium
 | iPod first to fifth generation — 45.7 mm (1.8
in) hard drives (ATA, 4200 rpm with proprietary
connectors) made by
Toshiba |
 | iPod mini — 25.4 mm (1 in)
Microdrives manufactured by Hitachi and Seagate
|
 | iPod nano — Flash memory from
Samsung, Toshiba, and others. |
 | iPod shuffle — Flash memory |
Batteries
 | iPod first and second generation, nano,
shuffle — Internal
lithium polymer batteries |
 | iPod third to fifth generation — Internal
lithium-ion batteries |
Connectivity
Two iPod wall chargers, with FireWire
(left) and USB (right) connectors, which allow
iPods to charge without a computer.
Originally, a FireWire connection to the host
computer was used to update songs or recharge the
battery. The battery could also be charged with a
power adapter that was included with the first four
generations. The third generation began including a
dock connector, allowing for FireWire or USB
connectivity. This provided better compatibility
with PCs, as most of them did not have FireWire
ports at the time. However, the device could not be
charged over USB, so the FireWire cables were
nonetheless needed to connect to the AC adapter. The
dock connector also brought opportunities to
exchange data, sound and power with an iPod, which
ultimately created a large market of accessories,
manufactured by third parties such as Belkin and
Griffin. The second generation iPod shuffle uses a
single 3.5 mm jack which acts as both a headphone
jack and a data port for the dock.
The iPod mini and the fourth generation iPod
allowed recharging via USB and eventually Apple
began shipping iPods with USB cables instead of
FireWire, although the latter was available
separately. As of the first generation iPod nano and
the fifth generation iPod classic, Apple
discontinued using FireWire for data transfer and
made a full transition to USB 2.0, due to its
widespread adoption. FireWire was then usable for
recharging only.
Accessories
Many accessories have been made for the iPod. A
large amount are made by third party companies,
although many, such as iPod Hi-Fi, are made by
Apple. This market is sometimes described as the
iPod ecosystem. Some accessories add extra features
that other music players have, such as sound
recorders, FM radio tuners, wired remote controls,
and audio/visual cables for TV connections. Other
accessories offer more unique features like the
Nike+iPod pedometer and the iPod Camera Connector.
Other notable accessories include external speakers,
wireless remote controls, protective cases/films and
wireless earphones. Among the first accessory
manufacturers were Griffin Technology, Belkin, JBL,
Bose, Monster Cable, and SendStation.
Two designs of iPod earbuds. The current
version is shown on the right.
The white earphones (or "earbuds") that ship with
all iPods have become symbolic of the brand.
Advertisements feature them prominently, often
contrasting the white earphones (and cords) with
people shown as dark silhouettes. The original
earphones came with the first generation iPod. They
were revised to be smaller after Apple received
complaints of the earbuds being too large. The
revised earphones were shipped with second through
early fifth generation iPods, the iPod mini, and the
first generation nanos The earbuds were revised
again in 2006, featuring an even smaller and more
streamlined design. This third type was shipped with
late fifth generation iPods and the second
generation nanos. All first generation iPod shuffles
and the second generation up until January 30, 2007
(when color models were introduced) had the second
kind; those that shipped after that date had the
third kind.
In 2005, New York's Metropolitan Transportation
Authority placed adverts on the subways warning
passengers that "Earphones are a giveaway. Protect
your device", after iPod thefts on the subway rose
from zero in 2004 to 50 in the first three months of
2005.
BMW released the first iPod automobile interface,
allowing drivers of newer BMW vehicles to control
their iPod using either the built-in steering wheel
controls or the radio head-unit buttons. Apple
announced in 2005 that similar systems would be
available for other vehicle brands, including
Mercedes-Benz, Volvo, Nissan, Alfa Romeo, Ferrari,
Acura, Audi, Honda, Renault and Volkswagen. Scion
offers standard iPod connectivity on all their cars.
Some independent stereo manufacturers including
JVC, Pioneer, Kenwood, Alpine, Sony, and Harman
Kardon also have iPod-specific integration
solutions. Alternative connection methods include
adaptor kits (that use the cassette deck or the CD
changer port), audio input jacks, and FM
transmitters such as the iTrip — although personal
FM transmitters are illegal in some countries. Many
car manufacturers have added audio input jacks as
standard.
Beginning in mid-2007, four major airlines,
United, Continental, Delta, and Emirates reached
agreements to install iPod seat connections. The
free service will allow passengers to power and
charge their iPod, and view their video and music
libraries on individual seat-back displays.
Originally KLM and Air France were reported to be
part of the deal with Apple, but they later released
statements explaining that they were only
contemplating the possibility of incorporating such
systems.
Models
| Model |
Generation |
Image |
Capacity |
Changes introduced |
Connection |
Original release date |
Minimum OS to sync |
| iPod classic |
first |
 |
5, 10 GB |
First model, with mechanical scroll wheel.
10 GB model released later. |
FireWire |
23 October
2001 |
Mac:
9,
10.1 |
| second |
 |
10, 20 GB |
Touch-sensitive wheel. FireWire port had a
cover. Hold switch revised. Windows
compatibility through
Musicmatch. |
FireWire |
17 July
2002 |
Mac:
10.1
Win:
2000 |
| third |
 |
10, 15, 20, 30, 40 GB |
First complete redesign with all-touch
interface, dock connector, and slimmer case.
Musicmatch support dropped with later release of
iTunes 4.7 for Windows. |
FireWire (USB
for syncing only) |
28 April
2003 |
Mac:
10.1
Win:
2000 |
| fourth |
 |
20, 40 GB |
Adopted Click Wheel from iPod mini. |
FireWire or
USB |
19 July
2004 |
Mac:
10.2
Win:
2000 |
| fourth (photo)
(colour) |
 |
photo: 30, 40, 60 GB
color: 20, 60 GB |
Premium spin-off of 4G iPod with color
screen and picture viewing. Later
re-integrated into main iPod line. |
FireWire or USB |
October 2004 |
Mac:
10.2
Win:
2000 |
| fifth |
 |
30, 60, 80 GB |
Second full redesign with a slimmer case,
and larger screen with video playback. Offered
in black or white. |
USB (FireWire
for charging only) |
12 October
2005 |
Mac:
10.3
Win:
2000 |
| sixth |
 |
80, 160 GB |
Introduced the "classic" suffix. New
interface and anodized aluminum front plate.
Silver replaces white. |
USB (FireWire for charging only) |
5 September
2007 |
Mac:
10.4
Win:
XP |
| iPod mini (discontinued) |
first |
 |
4 GB |
New smaller model, available in 5 colors.
Introduced the "Click Wheel". |
USB or FireWire |
6 January
2004 |
Mac:
10.1
Win:
2000 |
| second |
 |
4, 6 GB |
Brighter color variants with longer battery
life. Click Wheel lettering matched body color.
Gold color discontinued. Later replaced by
iPod nano. |
USB or FireWire |
22 February
2005 |
Mac:
10.2
Win:
2000 |
| iPod nano |
first |
 |
1, 2, 4 GB |
Replaced iPod mini. Available in
black or white and used flash memory. Color
screen for picture viewing. 1 GB version
released later. |
USB (FireWire for charging only) |
7 September
2005 |
Mac:
10.3
Win:
2000 |
| second |
 |
2, 4, 8 GB |
Anodized aluminum casing and 6 colors
available. |
USB (FireWire for charging only) |
12 September
2006 |
Mac:
10.3
Win:
2000 |
| third |
 |
4, 8 GB |
2" QVGA screen, colors refreshed with chrome
back, new interface, video capability. |
USB (FireWire for charging only) |
5 September
2007 |
Mac:
10.4
Win:
XP |
| iPod shuffle |
first |
 |
512 MB, 1 GB |
New entry-level model. Uses flash memory and
has no screen. |
USB
(no adaptor required) |
11 January
2005 |
Mac:
10.2
Win:
2000 |
| second |
 |
1 GB |
Smaller clip design with anodized aluminum
casing. 4 color options added later. Colors were
later refreshed. |
USB |
12 September
2006 |
Mac:
10.3
Win:
2000 |
| iPod touch |
first |
 |
8, 16 GB |
With
Safari browser,
Multi-touch,
Wi-Fi, wireless access to the
iTunes Store and YouTube. |
USB (FireWire for charging only) |
5 September
2007 |
Mac:
10.4
Win:
XP |
Identifying iPod models
Each new generation usually has more features and
refinements while typically being smaller and
lighter than its predecessor. Notable changes
include the touch-sensitive click wheel replacing
the mechanical scroll wheel, use of color displays,
and flash memory replacing hard disks. Discontinued
models include the first five generations of the
full-sized iPod, both generations of the iPod mini,
the first generation of the shuffle, and the first
two generations of the nano.
The software bundled with the first generation
iPod was Macintosh-only, so Windows users had to use
third-party software like ephPod or XPlay to manage
their music. When Apple introduced the second
generation of iPods in July 2002, they sold two
versions, one that included iTunes for Macintosh
users and another that included Musicmatch Jukebox
for Windows users. In October 2003, Apple released
the Windows version of iTunes, and started selling
iPods that included both Macintosh and Windows
versions of iTunes so that they could be used with
either platform.
In December 2002, Apple unveiled its first
limited edition iPods, with either Madonna’s, Tony
Hawk’s, or Beck’s signature or No Doubt's band logo
engraved on the back for an extra US$50.[27] On
October 26, 2004, Apple introduced a special edition
of its fourth generation monochrome iPod, designed
in the color scheme of the album How to Dismantle an
Atomic Bomb by Irish rock band U2. It had a black
case with a red click wheel and the back had the
engraved signatures of U2's band members. This iPod
was updated alongside the iPod photo and fifth
generation iPod.
On October 13, 2006, Apple released a special
edition 4 GB red iPod nano as part of the campaign.
An 8 GB version was released three weeks later and
both of them sold for the same price as the standard
models. US$10 from each sale is donated to The
Global Fund to Fight AIDS, Tuberculosis & Malaria.
On September 5, 2007, Apple also added a iPod
shuffle model. They did not disclose how much will
be donated to charity from this model. Apple also
released Special Edition Harry Potter iPods to
accompany the iPod photo. These were engraved with
the Hogwarts Crest on the back and were only
available to purchasers of the Harry Potter
audiobooks. They were updated when the fifth
generation iPods were released, but were only
available for a limited time.
Criticisms
Battery issues
The advertised battery life on most models is
different from the real-world achievable life. For
example, the fifth generation 30 GB iPod is
advertised as having up to 14 hours of music
playback. An MP3.com report stated that this was
virtually unachievable under real-life usage
conditions, with a writer for MP3.com getting on
average less than 8 hours from his or her iPod.
In 2003, class action lawsuits were brought against
Apple complaining that the battery charges lasted
for shorter lengths of time than stated and that the
battery degraded over time.
The lawsuits were settled by offering individuals
either US$50 store credit or a free battery
replacement.
iPod batteries are not designed to be removed or
replaced by the user, although some users have been
able to open the case themselves, usually following
instructions from third-party vendors of iPod
replacement batteries. Compounding the problem,
Apple initially would not replace worn-out
batteries. The official policy was that the customer
should buy a refurbished replacement iPod, at a cost
almost equivalent to a brand new one. All
lithium-ion batteries eventually lose capacity
during their lifetime (guidelines are available for
prolonging life-span) and this situation led to a
small market for third-party battery replacement
kits.
Apple announced a battery replacement program on
November 14, 2003, a week before a high publicity
stunt and website by the Neistat Brothers. The
initial cost was US$99, and it was lowered to US$59
in 2005. One week later, Apple offered an extended
iPod warranty for US$59. For the iPod nano,
soldering tools are needed because the battery is
soldered onto the main board. Fifth generation iPods
have their battery attached to the backplate with
adhesive.
Bass response
The third generation iPod had a weak bass
response, as shown in audio tests.The combination of
the undersized DC-blocking capacitors and the
typical low-impedance of most consumer headphones
form a high-pass filter, which attenuates the
low-frequency bass output by up to 10 dB. Similar
capacitors were used in the fourth generation
iPods.The problem is reduced when using
high-impedance headphones and is completely masked
when driving high-impedance (line level) loads. The
first generation iPod shuffle uses a dual-transistor
output stage rather than a single capacitor-coupled
output, and does not exhibit reduced bass response
for any load.
Equalizer
If the sound is enhanced with the iPod's software
equalizer (EQ), some EQ settings — like R&B,
Rock, Acoustic, and Bass Booster — can cause bass
distortion too easily.
The equalizer amplifies the digital audio level
beyond the software's limit, causing distortion (clipping)
on songs that have a bass drum or use a bassy
instrument, even when the amplifier level is low.
One possible workaround is to reduce the volume
level of the songs by modifying the audio files.
Reliability and
durability
iPods have been criticized for their short
life-span, fragile hard drives, and planned
obsolescence.A 2005 survey conducted on the
MacInTouch website found that the iPod had an
average failure rate of 13.7%. It concluded that
some models were more durable than others. In
particular failure rates for iPods employing hard
drives was usually above 20% while those with flash
memory had a failure rate below 10%, indicating poor
hard drive durability. In late 2005, many users
complained that the surface of the first generation
iPod nano can become scratched easily, rendering the
screen unusable. A class action lawsuit was also
filed. Apple initially considered the issue a minor
defect, but later began shipping these iPods with
protective sleeves.
Allegations of worker
exploitation
On June 11, 2006, the British newspaper Mail on
Sunday reported that iPods are mainly manufactured
by workers who earn no more than US$50 per month and
work 15-hour shifts. Apple investigated the case
with independent auditors and found that, while some
of the plant's labour practices met Apple's Code of
Conduct, others did not: Employees worked over 60
hours a week for 35% of the time, and worked more
than six consecutive days for 25% of the time.
Apple's manufacturer — which initially denied the
abuses — promised to disallow working more hours
than the Code allowed. Apple hired a workplace
standards auditing company, Verité, and joined the
Electronic Industry Code of Conduct Implementation
Group to oversee the measures. On December 31, 2006,
workers at the Taiwanese factory (owned by Foxconn)
formed a union. The union is affiliated with the
All-China Federation of Trade Unions.
Patent disputes
In 2005, Apple Computer faced two lawsuits
claiming patent infringement by the iPod and its
associated technologies: Advanced Audio Devices
claimed the iPod breached its patent on a "music
jukebox", while a Hong Kong-based IP portfolio
company called Pat-rights filed a suit claiming that
Apple's FairPlay technology breached a patent issued
to inventor Ho Keung Tse. The latter case also
includes the online music stores of Sony,
RealNetworks, Napster, and Musicmatch as defendants.
Apple's application to the United States Patent
and Trademark Office for a patent on "rotational
user inputs", as used on the iPod's interface,
received a third "non-final rejection" (NFR) in
August 2005. Also in August 2005, Creative
Technology, one of Apple's main rivals in the MP3
player market, announced that it held a patent on
part of the music selection interface used by the
iPod, which Creative dubbed the "Zen Patent",
granted on August 9, 2005. On May 15, 2006, Creative
filed another suit against Apple with the United
States District Court for the Northern District of
California. Creative also asked the United States
International Trade Commission to investigate
whether Apple was breaching U.S. trade laws by
importing iPods into the United States.
On August 24, 2006, Apple and Creative announced
a broad settlement to end their legal disputes.
Apple will pay Creative US$100 million for a paid-up
license, to use Creative's awarded patent in all
Apple products. As part of the agreement, Apple will
recoup part of its payment, if Creative is
successful in licensing the patent. Creative then
announced its intention to produce iPod accessories
by joining the Made for iPod program.
Sales
iPod quarterly sales. Click for table of
data and sources.
Apple revenue
breakdown for Q4 2007.
Since October 2004, the iPod has 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.[62] During the year
from January 2004 to January 2005, the high
rate of sales caused its U.S. market share to
increase from 31% to 65% and in July 2005,
this market share was measured at 74%.
The release of the iPod mini helped to
ensure this success at a time when competing
flash-based music players were once dominant.
On January 8, 2004, Hewlett-Packard (HP)
announced that they would sell HP-branded
iPods under a license agreement from Apple.
Several new retail channels were
used—including Wal-Mart—and these iPods
eventually made up 5% of all iPod sales. In
July 2005, HP stopped selling iPods due to
unfavorable terms and conditions imposed by
Apple.
In January 2007, Apple reported record
quarterly earnings of US$7.1 billion, of which
48% was made from iPod sales.
On April 9, 2007, it was announced that
Apple had sold its one-hundred millionth iPod,
making it the biggest selling digital music
player of all time. In April 2007, Apple
reported second quarter earnings of US$5.2
billion, of which 32% was made from iPod
sales. Apple and several industry analysts
suggest that iPod users are likely to purchase
other Apple products such as Mac computers.
On September 5, 2007, during their "The
Beat Goes On" event, Apple announced that the
iPod had surpassed 110 million units sold.
On October 22, 2007, Apple reported
quarterly earnings of US$6.22 billion, of
which 30.69% came from Apple notebook sales,
19.22% from desktop sales and 26% from iPod
sales. Apple's 2007 year revenue increased to
US$24.01 billion with US$3.5 billion in
profits. Apple ended the fiscal year 2007 with
US$15.4 billion in cash and no debt.
Industry impact
iPods have won several awards ranging from
engineering excellence, to most innovative audio
product, to fourth best computer product of 2006.
iPods often receive favorable reviews; scoring on
looks, clean design, and ease of use. PC World says
that iPods have "altered the landscape for portable
audio players". Several industries are modifying
their products to work better with both the iPod and
the AAC audio format. Examples include CD
copy-protection schemes, and mobile phones, such as
phones from Sony Ericsson and Nokia, which play AAC
files rather than WMA. Microsoft's Zune device also
supports AAC and it has adopted a similar closed DRM
model used by iPods and the iTunes Store, despite
Microsoft previously marketing the benefits of
choice with their PlaysForSure initiative. Podcasts
and download charts have also had mainstream
adoption.
In addition to its reputation as a respected
entertainment device, the iPod has also become
accepted as a business device. Government
departments, major institutions and international
organisations have turned to the iPod as a delivery
mechanism for business communication and training,
such as the Royal and Western Infirmaries in
Glasgow, Scotland where iPods are used to train new
staff.
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