According to ABI Research, Apple’s iTunes service has the potential to outstrip its formidable iPod business and may allow it to enter the home audio and video markets ahead of its competitors.
Apple released its latest earnings statements last week, and surprised the markets with the continuing depth of its iPod penetration, which exceeded most analysts’ expectations. Sales of iPod accessories, both from Apple and from third parties such as Bose and JVC, are booming as well, including high-quality home ‘docking station’ systems.
Research director Vamsi Sistla says in a press release, “The battle for portable devices has already been won by iPod (unless Microsoft’s strategy for its Zune platform succeeds) but in the home and mobile markets, the prize is still up for grabs. iTunes could be a ‘Trojan Horse’ through which Apple can enter the home market sooner than the competition.”
The key to this opportunity is consumers’ growing interest in digital media connectivity in the home. “I think we will soon see more line-powered consumer audio devices–high-end audio devices with AV receivers, and multi-room audio systems–adding support for iTunes to their current support for iPod,” Sistla suggests.
With over a billion files downloaded from iTunes so far, computers all over the world are brimming with music, speech and video, often organized by iTunes client software into playlists and catalogues. Leveraging all that content, which users have already paid for and want to hear on a good home audio system or watch on a digital-ready TV, creates a huge opening for consumer electronics vendors.
That could happen through a standard personal computer. Or, it could be implemented through a dedicated “media center” PC. Apple offers this already with the combination of its Mac Mini (now Intel-based) and Front Row networking software; and now, Sistla affirms, “The field is wide open for PC manufacturers and other vendors of home CE systems to capitalize on what should be a large and dynamic market.”
ABI Research’s new study, “Home and Portable Audio Device Markets” (http://www.abiresearch.com/products/market_research/AUDI), assesses home audio and portable devices with an emphasis on multi room audio systems, high-end AV receivers, and iPod accessories within the home. Detailed forecasts of shipments, ASPs and revenue are provided. It also features analysis of the portable audio device market, with emphasis on iPod and iTunes, and the future of home and portable audio technologies. The study forms part of the Consumer Electronics Research Service (http://www.abiresearch.com/products/service/Consumer_Electronics_Rese arch_Service).
[Thanks to MacDailyNews Reader “LinuxGuy” for the heads up.]
Thanks for the research, ABI. Very informative. No, really, we mean it. Thanks.
Surely, we all look forward to ABI Research’s next report: “Bears defecate in the woods.”
BTW, The battle for portable devices has already been won by iPod. You can end the sentence right there.
Related articles:
Zune: Apple cannot lose. Microsoft cannot win. – July 26, 2006
Apple needs to give the Mac mini an iPod dock, rename it iHub or iHome, and pitch it as the ultimate iPod accessory/media center. Oh, and an AirPort Express AV wouldn’t hurt either.
duh. yuhthink?
Way to hedge their bets with this statement: “The battle for portable devices has already been won by iPod (unless Microsoft’s strategy for its Zune platform succeeds)” which is basically the same as saying that the iPod has won unless something else beats it and it hasn’t.
The iPod HiFi s*cks.
There I said it, can I go now?
What? You want to know why i think it s*cks?
1: It’s not true stero, it’s not hi fi
2: it sounds terrible
3: it’s ugly, it’s clunky and it gets dirty easy
4: it’s terribly overpriced for inferior quality
Flame me if you want, that’s my opinion, I’ll just turn up my 800 watt REAL HiFi 7.1 sound sytem and drown you out.
lalallalalalalalalalala
Well, yeah… WE KNOW… But there are millions of people out there who don’t know..
Again, lose the arrogance MDN, you may be Apple advocates, but with your takes, you are an embarrasment to the face of Apple.
All in all, the article is an informative piece for the average Joe. What’s the point in criticizing it?
The fact that current Macs with Front Row and Bonjour can act as a media center is key. Apple is gaining great feedback from experimenters as to what works, how well it works and, more importantly, what are the deficiencies. In effect, Apple is getting a lot of free testing and development research from the Mac techie community. So when Apple finally announces their iMedia (or iWhatever) architecture and products, those apples may already be well polished.
When it comes time to watch a movie or just TV, nothing comes as simple as insert a disk and press play. Adding a computer to all this just complicates it too much. However there is potential to allow all the grand options that people like, like organizing movies and music, or auto recording, or playback on demand from one control console. Only thing is that I don’t see this being done by a Mac Mini and I don’t see anything from Apple that would become the control center. A Mac Desktop computer is not the best way to go about controlling Audio and Video in the home. People want Apple to add an iPod dock to the mini, should they also add a VCR tape slot? How about high power speaker outputs? How about control for mood lighting? How about picture-in-picture so I can watch the game while a commercial is on during a movie? Is Apple prepared to jump into this arena? I haven’t seen it yet. But also not from anyother computer maker either. This will require interfacing with the VCR/DVD/Amplifier/Speaker/etc companies to develop a standard control interface so all devices can be connected and controlled, Apple could make a hand size, hand held control console that can also be a remote desktop. Still a lot of work to do.
Mine Enemy,
Project much? Lighten up. MDN’s take is obviously humor, not arrogance.
Sorry, I meant my “duh. yuhthink?” to refer to: “ABI Research: iTunes could be Apple’s ‘Trojan Horse’ in home audio-video market”, not to Connor’s post.
Spastic Roadkill – you are f-ing Hilarious!
The funniest one is: It gets dirty. Hahahahahahahaha – (wiping tears from my eyes)
But really: This is all wrong, the analysts predicted that the iPod was on it’s last leg. What happened? How Could they be wrong?
Maybe cause they are windows clowns!
Thanks Hmmm, I was hoping as much!
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Feldspar,
This “take” is just one example of MDN’s overall general arrogance. They have such a 3rd grade “I’m better than you, Na na na na na” mentality that it turns more people off than anything..
I never recommend this site to any of my PC using friends who are considering switching… MDN’s takes just reinforce all the stereo-types of Mac users. They offer no objectivity whatsoever.. Everything is “Apple is better,” “Apple can do no wrong,” and “Everything else sucks.” They rip on any journalist who even writes the slightest negative on Apple and they also rip on journalists who write positives on Apple. Steve Jack is a moron…. Stockholm syndrome? Give me a f’ing break. Idiot.
MDN is as ridiculous as Dvorak and Enderle except in reverse.
When do you ever need 800 watts??
Mine Enemy’s got a point… I read this site daily, and definately get a few laughs out of it, but… I’m already sold. I’m already a macfan. I think the tone might not be as funny to someone on the fence. JMHO.
Peace, out.
I second Mine enemy’s point. There are better ways to win people over to your point of view, and there’s a lot to be said for being humble. Kill em with kindness, not elitistism. Then again, outrageousness generates hits.
Bears do what now?
Where?!?
S.O.B.
“When do you ever need 800 watts??”
You could hook the speaker cables up to a heating coil and warm a small bedroom. Uh, oh well. Hope he doesn’t live in California, they really nned the power.
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I agree with Mine Enemy. I don’t understand a lot of the ‘MDN Takes’ derogatory comments. You won’t get people interested in Macs if you insult them and treat them like idiots. It’s usually always better to ‘take the high road’ and try to understand the viewpoints of others. What goes around, comes around.
Spastic Roadkill,
You know, repeating something off topic, over and over in every discusion does not make it true.
The iPod HiFi is the best iPod speaker system for any money. It is not designed for a night club it’s designed for a single (clean) room in the average home. It does the best job in that situation. That is where you must test listen to it. It is using a two track 128 kbps file, it doesn’t need 800 watts and 7 speakers. That is massive overkill for 128 kbps aac files.
Idiot.
When DON’T you need 800 watts?
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The battle for portable devices has already been won by iPod but in the home and mobile markets, the prize is still up for grabs. iTunes could be a ‘Trojan Horse’ through which Apple can enter the home market sooner than the competition
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