In the past few years Apple has catapulted into being a major player in the digital media market and a significant force in the music industry. Apple’s iTunes Music Store is currently the market leader in legally downloadable music, and its iPod has such dominance that trade journals often refer to new MP3 players as potential “iPod killers.” The popularity of iTunes and iPod has significantly increased the popularity of Apple’s computer systems, as well. Recent reports indicate that iPod owners are significantly more likely to purchase an Apple computer. Apple couldn’t be happier to see their revenues increase.
What is most striking about this trend is that Apple has been able to keep up with its impressive advertising run. Apple has long been known for creativity in marketing, from the original 1984 Apple Macintosh commercial, through “Think Different” to the current iPod campaign. But the recent partnership with BMW, HP and legendary rock group U2 mark a new shift in the way Apple markets their products, and to whom those products are being marketed.
Product placement has long been a staple of Apple’s marketing strategy. Look and you will find Apple products in a dizzying array of movies and TV shows. The ubiquitous white apple logo glowing from a laptop pops up again and again in NBC’s “The West Wing,” even though there are very few Apple products being used in the federal government. In some instances, such as on “The Drew Carey Show,” you can tell when the episode was filmed based on which generation of iBook or iMac is on screen. The number of times I see an iPod on television is just too much to count.
But there are new rumors about the long fabled “black iPod.” A “black iPod” has been rumored to exist each time a new special edition or updated version comes out. But next Tuesday, in San Diego, Apple is scheduled to announce the new limited edition U2 iPod which will come with U2’s new album, How to Dismantle an Atomic Bomb, preloaded along with selected songs from the group’s past catalog. This coincides with the new U2 iPod commercial as well as the extensive placement of the iPod in U2’s latest video. Regardless of whether it is physically black, the new limited edition iPod hints at something greater on the horizon.
The partnership with U2, as well as their partnership with HP and BMW, signals a shift toward an older demographic for Apple. The iPod already has dominance among younger users, but U2 and BMW, specifically, don’t help them to extend that dominance. U2’s fan base is typically aged a little older than the college crowd and BMW appeals to the middle-aged well to do. It is clear that Apple is trying to reach out to the older market more, but are they doing it to increase computer sales revenue, or do they have some other objective?
Speculation is also flying around a rumored “photo iPod” with a color screen and the ability to store and view images (using a variant of Apple’s iPhoto software, of course). Apple’s drive supplier, Toshiba, has announced a new 60GB drive brother to the 40GB drive Apple already uses in its 4th generation iPod, and Apple’s chip supplier, PortalPlayer, announced support for image formats almost a year ago. The rumor is that Apple was supposed to announce this iPod with the announcement of the new 4th generation iPods, but delays from
Toshiba pushed it back. The new color iPod is supposed to feature a video output port that would allow users to connect to a TV to present slideshows.
If this rumor were true it would do more than make my three-month-old 40GB iPod obsolete. It would position Apple as the most dominant and innovative media player on the market. With the recent tie-in allowing certain cell phone users to download and store a few songs from the iTunes Music Store, how much longer will it be before Apple begins to move into the PDA and cell phone markets?
What is interesting is that the demographics that the HP, BMW and U2 partnerships help target are the same demographics that Apple would need in order to be successful in the PDA and cell phone markets. If Apple’s eventual goal is to create an all-in-one media device that incorporates its beloved iPod with phone and data capabilities, we may be looking at the beginning of the move. I, for one, am looking forward to the day that I grab one device on my way out, instead of the phone, iPod and PDA. And if Apple can incorporate my house keys into the mix, I just might drink the Kool-Aid.
