Apple unveils new technology

Still riding the coattails of possibly the most iconic product of the 21st century, Apple could be looking at another breakthrough in the world of entertainment. Providing both the expected and unexpected at a press conference Tuesday in San Francisco, Apple Computer announced further developments with its popular iTunes offering, as well as plans to take the business into the living room with movies and TV, according to a write-up in The New York Times.

In a surprise to no one, Steven P. Jobs, Apple's CEO and the man behind the development of the iPod, began by announcing plans to renew the popular product. Apple will soon be offering an updated version of the traditional iPod, as well as a new group of iPod Nanos, which will provide both a larger memory and a very appealing 24-hour battery.

After this, Jobs started taking things in a new direction. In a second announcement, which had been anticipated in the industry from some time, Apple also announced plans to make movies available for download on iTunes in the same it provides music. New movies will be available for $14.99 ($12.99 if pre-ordered), and older movies will be available for $9.99. Walt Disney Pictures, Pixar Animation Studios, Touchstone Pictures, and Miramax are the first studios to partner with Apple, giving them an initial 75 movies available for download. (Interestingly, the Times article notes that all four of these studios are owned by the Walt Disney Company, of which Mr. Jobs is the largest individual stockholder and sits on the board of directors)

So far, the addition of movie downloads has not been embraced as warmly by the movie industry as the iPod was by record companies. The general consensus is that, although movies could in fact be provided at a resolution comparable to DVDs, downloads could hurt a huge source of income for the movie industry, in the form of DVD sales. As one Hollywood executive, who asked to remain unnamed, said in the article, "Steve's announcement isn't about helping us sell movies. It's about him trying to sell more iPods."

The real surprise of the morning came when Jobs announced Apple's plans for a product it calls iTV, scheduled to be released in early 2007. This product would plug into one's TV, and connect wirelessly to a Macintosh computer or the Internet, at which point it could pull video and audio files off the computer and play them through the television. While Apple is a late entrant into an already crowded market - Sony and Microsoft provide numerous products for the living room - Jobs suggested the wireless aspect of iTV would separate it from the rest.

When asked for his thoughts on the announcements, Michael Gartenberg, vice president and research director of Jupiter Research, responded by saying, "He did what he needed to do." Although initial response to these new products is not as positive as in the past, Apple does have a reputation and history of accurately predicting the market. Only time will tell if these products have the same explosive success Apple has become accustomed to.