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2006-02-28 - Is Apples Next Act VoIP iPod

Apple CEO Steve Jobs is a fan of hugely-hyped product introductions and this latest campaign, set to take place at Apple' s Cupertino, California headquarters, has the same buzz factor as past ones. It started as usual with a vague reference to "some fun new products" in invitations to the media sent out last week.

 

What is known: the invitations were issued by the iPod and iTunes media department, suggesting that the announcement is likely related to those two.

 

Talk of Wi-Fi on personal media devices like iPods has generated speculation that the company might roll out VoIP-enabled media players.

 

But the announcement could have something to do with Apples digital media store iTunes as there is a need for increased video content, given the home entertainment capabilities of the iMac G5 and a video-playing iPod announced last fall (see Apple 9% Up After Video iPod).


 

Piper Jaffray analyst Gene Munster puts his money on new iTunes offerings.

 

"I don' t think Disney content would move as fast as feature-length movies," Mr. Munster said, referring to the film shorts and TV shows currently available. "It seems like the right time to start offering movies."

 

Mr. Munster added that he expects to see a new Shuffle, the cheapest of the iPods, with a screen. He also thinks other hardware might debut, specifically computers, like a new Mac Mini or a notebook line to replace the current iBooks.

 

Apple is known for unrolling new product after new product within weeks of each other and within the same family. A new iBook, then, makes sense since the company unveiled its MacBook Pro, replacing the PowerBook line of portables, last month at MacWorld (see Apple Fans Embrace Intel Macs).

 

Then again, MacWorld' s focus on computers came at the expense of iPods. Since the last version of the player, the video-playing unit, appeared in October, a new iPod is long overdue. And thats one reason a Wi-Fi-enabled iPod makes sense.

 

Earlier this month at the 3GSM World Summit in Barcelona, chip maker PortalPlayer and wireless technology provider CSR showed off their joint project, a processor that puts Wi-Fi into small personal media devices.

 

Wi-Fi Capability

Since 95 percent of PortalPlayers business is iPod-related, many believe Apple' s device will be the first to sport the technology. Wi-Fi could enable iPods to make VoIP phone calls and could allow them could download iTunes content directly from the Internet bypassing the content fee-share issues of cellular providers.

 

"Instead of a phone, maybe in a year Apple could have a VoIP-enabled iPod, "said Current Analysis analyst Chris Crotty (see Wi-Fi iPod Expected Soon).

 

But others believe an actual Apple phone, sporting iTunes software, makes more sense, especially since Wi-Fi availability is spotty while cellular networks blanket areas with coverage.

 

"We still believe there will be a phone from Apple by holiday of 2006," Mr. Munster said.

 

Even if CEO Steve Jobs doesnt unveil all these items Tuesday, it doesn' t mean they arent in the works. Apple' s 30th anniversary is April, its software developer' s conference is every June, and it has a Paris event every September.

 

"The big picture is about the window for the next six months," Mr. Munster said.

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