Two million iPods sold, Apple Self-Esteem Hits Record High

Apple® today announced that iPad™ sales have topped two million in the less than 60 days since its launch on April 3. Originally available only in the US, this weekend Apple began shipping iPad in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK. iPad will be available in nine more countries in July and additional countries later this year.

"We are working hard to build enough iPads for everyone“ said Steve Jobs, Apple’s CEO. “We appreciate their patience."

In today's press release, Apple modestly describes itself as follows: "Apple ignited the personal computer revolution with the Apple II, then reinvented the personal computer with the Macintosh. Apple continues to lead the industry with its award-winning computers, OS X operating system, and iLife, iWork and professional applications. Apple leads the digital music revolution with its iPods and iTunes online store, has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices."

High self-esteem can be a wonderful thing to behold. It is very hard to argue with great sucess.

iPad parts cost at least $259, what about new iPhones?

For innovative products, price and cost may at first not be directly related, but, as Damon Runyon says, "The race is not always to the swift, nor the battle to the strong, but that is the way to bet."

I enjoy reading how iSuppli and other firms dissemble products to determine their cost. For example, Apple's iPad tablet computer costs as little as $259.60 to build.

Materials for the iPad, which went on sale Apr. 3, include a touchscreen display that costs $95 and a $26.80 processor designed by Apple and manufactured by Samsung Electronics, according to El Segundo (Calif.)-based iSuppli. This analysis means that the components of the lowest-priced iPad, which includes 16 GB of memory, constitute 52% of its $499 retail price, on par with other Apple products including the iPhone 3GS. You can find more details on the costs in an article by Arik Hesseldahl in Business Week.

Will the iPad price trend resemble the iPhone? Back in 2007, early iPhone adopters paid $600 for a phone. Two months later, Apple dropped the price to $400. Then, in June 2009, it introduced a better version, with twice the storage, for $200, one-third the original’s price. Now as we anxiously anticipate a new iPhone, we all wonder what the price will be.

Back to the iPad, will the cost drop significantly? Probably so. And when it does, we should follow the advice of DAMON DARLIN, “Applause, Please, for Early Adopters,” as related in the NYTimes.

“WHY would anyone rush to buy a product knowing full well that it would be cheaper — and probably better — in a matter of months?

”What is truly remarkable about this surge in consumption is that early adopters — those who simply have to own a new gadget right away — cheerfully exhibited what might seem to be irrational behavior. These ardent consumers will stand in long lines, if that’s what it takes, to get an overpriced gadget ahead of everyone else they know.” In my own case, I want to thank my former student, Rick Genter, the first person to show me an iPad.

If you are an entrepreneur contemplating product development in the iPad/iPhone arena, or represent a large volume purchaser of similar products, it would be very helpful to have direct access to the reports from iSuppli. “Unfortunately iSuppli does not allow for public posting of our report pricing,” says Debra Jaramilla, Manager, Marketing. “However, please do direct them (you) to info@isuppli.com or 310.524.4007 for more questions.”

3,000,000,000 Downloads, App Store Growth Boggles The Mind!

While preparing a proposal for a series of University lectures, over the weekend I looked up some figures for the growth of the Apple App Store. I wanted the numbers to be solid and verifiable; what I came up with was 100,000 Apps leading to 2 billion downloads. This morning, I sent off my proposal to several of my colleagues for review.


This afternoon Apple announced that it is now 3 billion downloads. I’m not hurt by the increase, other than to worry that the industry is changing faster than I can update my presentation.

Last time I talked to my former IBM colleague, Jim Maguire, he was still travelling the world teaching a course on IBM OS/360 Job Control Language that he had first prepared in the 1960s. His comment: “the best thing is it never changes.”

The essence of Apple’s press release is here:

CUPERTINO, California—January 5, 2010—Apple® today announced that more than three billion apps have been downloaded from its revolutionary App Store by iPhone® and iPod touch® users worldwide.

“Three billion applications downloaded in less than 18 months—this is like nothing we’ve ever seen before,” said Steve Jobs, Apple’s CEO. “The revolutionary App Store offers iPhone and iPod touch users an experience unlike anything else available on other mobile devices, and we see no signs of the competition catching up anytime soon.”

iPhone and iPod touch customers in 77 countries worldwide can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

Note:  The first version of this post left out three zeros, claiming downloads in millions, rather than billions.  It is always dangerous to be both the writer and the editor.