[DM-MUG] iTunes and iPod

[Bailey Ford]

Update on iTunes music store. .

230,000,000 songs sold to date. 1,250,000 songs per day. rate of half a 
billion songs per year. 70% market share has remained even with all of 
the new players in the market. Now in 15 countries with 70% of the 
global music market. Sold over a million prepaid cards since Turkeyday. 
iTunes essentials area of the ITMS has been retooled.

Now the iPod. For the holiday quarter, sold 4,500,000 iPods. Read that 
again 4.5 million. 500% growth year over year. iPods sold to date is  
 >10 million. over 8 million in 2004. Dec 16th 2004 - they made the 10 
millionth iPod (he shows it to us). Amazon's top 5 consumer electronics 
products for the last quarter: Apple made 3 of them. There are now 400 
iPod add-ons.

New things - Car integration. Reviews last year's BMW adaptor. Other 
cars are following suit - Mercedes, Nissan, Volvo, Scion. BMW is doing 
a second generation adaptor. Alfa Romeo and Ferrari are rolling them 
out across the pond. Next new thing is cell phones - working with 
motorola to have a iTunes client right on the phone. Available this 
spring.

One More thing...

Jan 2005 we now have 65% unit market share, Flash market share is only 
29%, and the other hard drive based players are at 6%. Basically, the 
mini worked - it stole the high end flash market percentage. Now we go 
after the rest of them. A zillion little flash players with bad 
interface, not rechargeable, no click wheel, small display. Main thing 
is that they are not easy to use. Flash based player iPod Shuffle. 
looks like a packs of gum. weighs under 1 oz. middle button for 
play/pause vol up/down pref and next song. LED feedback to let you know 
when it 'got your command'. Cap on the bottom with USB2 connector on 
the bottom. 12 hour battery life. Lanyard supplied to wear it. the 
lanyard replaces the cap. There is no screen. New feature called 
autofill. It will build a playlist the right size according to your 
specifications - and bam - fills the iPodShuffle. Also works as a 
portable little drive. You can set the amount of space to use for music 
and how much to use for data.

2 models - (512MB - 120 songs. $99) (1GB - 240 songs $149) Ships today!

they also have iPod shuffle accessories. Arm band. There's a dock. a 
sport case for protection. Battery extender to add 20 hours. All are 
$29 each, rolling out this month.
"240 songs, a million different ways"

Show a new TV ad. These are usually posted at apple if you want to 
check it out.